Financing
LTV (Loan-to-Value)
Loan amount divided by the lender's eligible value basis. Investment-property cash-out limits vary by lender, program, property, borrower, seasoning, and appraisal.
How it's calculated
LTV = Loan Amount ÷ Property ValueExample
A $300,000 loan on a $400,000 property = 75% LTV.
Why LTV (Loan-to-Value) matters
LTV is one lender risk input. Lower leverage generally creates more equity buffer, but rate, approval, eligible value, and maximum LTV remain program- and borrower-specific.
Related terms
Down Payment %
Share of the purchase price you pay in cash. Required investment-property down payment varies by occ…
DSCR (Debt Service Coverage Ratio)
Net Operating Income ÷ mortgage payment. Measures whether the property's income comfortably covers d…
BRRRR
Buy, Rehab, Rent, Refinance, Repeat. A strategy that recycles capital across deals by refinancing ba…
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