LTV Calculator
Calculate Loan-to-Value ratio to determine your down payment and equity requirements. LTV = Loan Amount ÷ Property Value.
Typical commercial max LTV is 75-80%
What is LTV?
Loan-to-Value (LTV) expresses the loan amount as a percentage of the property's value. Lenders use LTV to manage their exposure risk.
Typical Commercial LTV Limits:
- Conventional: 70-75% max LTV
- SBA 504: Up to 90% LTV
- Bridge Loans: 65-75% LTV
- CMBS: 65-75% max LTV
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Frequently Asked Questions
What is the maximum LTV for commercial loans?
Typically 75-80% for Multifamily, and often lower (65-70%) for Office, Retail, or Industrial assets due to higher perceived risk.
Does LTV typically include rehab costs?
No. That is "Loan to Cost" (LTC). LTV is based on the current appraised value. Bridge loans often lend on LTC or ARV (After Repair Value).
How does LTV affect interest rates?
Lower leverage (lower LTV) usually qualifies you for lower interest rates because the lenders risk is reduced.
What is CLTV (Combined Loan-to-Value)?
CLTV includes all loans on the property (first mortgage + second mortgage/mezzanine debt) divided by the value.
Can seller financing lower the banks LTV?
Technically yes, it reduces the banks exposure, but many banks count the seller note in the total CLTV constraints.