HUD 223(f) LTC

What is Loan-to-Cost Ratio (LTC)?

What is Loan-to-Cost Ratio (LTC)?

Loan-to-Cost Ratio, or LTC, is a measure of leverage defined as project’s financing compared to its construction costs. LTC is important for some kinds of HUD multifamily financing, including HUD 221(d)(4) loans and HUD 232 loans, but is not a relevant factor for HUD 223(f) loans, since these loans do not fund property construction or rehabilitation.