Loan-to-Value Ratio

What is Loan-to-Value Ratio (LTV)?

What is Loan-to-Value Ratio (LTV)?

A loan-to-value or LTV ratio is a metric that compares the size of a loan to the value of the asset. Higher LTVs are generally riskier for lenders, and, for certain loans, can result in higher interest rates. When it comes to HUD 223(f) loans, HUD permits up to 85% LTV for market rate properties, up to 87% LTV for affordable properties, and up to 90% LTV for properties using rental assistance