The ratio of the loan amount in relation to the appraised value of the property. For example, an $80,000 loan ($20,000 down payment) on a $100,000 property constitutes an 80% LTV. Most lenders express their exposure for specific programs in terms of LTV limits. For example, most conforming lenders limit their exposure on the purchases of single-family homes to 95% LTV, which means that the borrower must provide at least a 5% down payment. For more information, see the "Loan-to-Value (LTV) ratios" article in the "Mortgage Industry" section.
Was this article helpful?
Tap into the secrets of the top investors… Discover The Untold Real Estate Investing Secrets Used By The World’s Top Millionaires To Generate Massive Amounts Of Passive Incomes To Feed Their Families For Decades! Finally You Can Fully Equip Yourself With These “Must Have” Investing Tools For Creating Financial Freedom And Living A Life Of Luxury!