LoanToValue LTV Ratio

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.

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