How much of the value is borrowed?
LTV answers: how much of the property's value is being borrowed? Lenders usually want LTV between 65% and 75%. A lower LTV means the borrower has more of their own money in the deal, which is safer for the lender.
LTV
LTV = Loan Amount ÷ Property Value × 100
- Loan Amount
- — The requested or funded loan balance
- Property Value
- — Purchase price or appraised value
Worked example: A $700,000 loan on a $1,000,000 property: LTV = $700,000 ÷ $1,000,000 = 70%.
Try it: see how LTV constrains loan size
Adjust the property value and the lender's max LTV — watch the maximum loan amount change alongside DSCR and Debt Yield.
Loan Sizer — DSCR / LTV / Debt Yield
Generalizes the classic Deal Checker: size the maximum loan under every constraint, then test a specific requested loan amount against each one.
Maximum Loan (binding constraint wins)
$3,000,000
Binding constraint: LTV
DSCR
1.59x
min 1.25x
LTV
70.0%
max 75%
Debt Yield
12.9%
min 9%
This requested loan amount passes every constraint — financeable at these terms.
Module Check
A building is worth $4,000,000. The borrower wants a $2,800,000 loan. What is the LTV, in percent?