LTV Calculator
Calculate your Loan-to-Value ratio to understand your equity position and see what loan programs you qualify for.
Property & Loan Details
LTV Analysis
Strong equity position. You qualify for most loan types with competitive rates.
LTV Visualization
Maximum LTV by Loan Type
| Loan Type | Max LTV | Notes |
|---|---|---|
| Conventional (Primary) | 97% | PMI required above 80% |
| Conventional (Investment) | 75-80% | Stricter requirements |
| FHA | 96.5% | Owner-occupied only |
| VA | 100% | Veterans only |
| Hard Money | 65-75% | Based on ARV typically |
| DSCR Loans | 75-80% | Investment properties |
| Cash-Out Refi | 75-80% | Based on current value |
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Understanding Loan-to-Value Ratio
LTV is one of the most important metrics in real estate financing. It determines what loans you qualify for, your interest rate, and how much equity you have at risk.
LTV Formula
LTV = (Loan Amount ÷ Property Value) × 100
Why LTV Matters
- Loan Qualification: Different loan types have max LTV limits
- Interest Rates: Lower LTV = better rates
- Risk Management: Higher equity = more protection in downturns
- Refinance Options: LTV determines cash-out availability
LTV Thresholds to Know
- 80% LTV: Common threshold for avoiding PMI (primary residences)
- 75% LTV: Sweet spot for investment property financing
- 70% LTV: Maximum for most hard money lenders (based on ARV)
Frequently Asked Questions
What is LTV ratio?▼
LTV (Loan-to-Value) ratio is the percentage of a property's value that is financed by a loan. It's calculated as (Loan Amount ÷ Property Value) × 100. An 80% LTV means you borrowed 80% of the property value.
What is a good LTV for investment property?▼
Most investment property loans allow up to 75-80% LTV. Lower LTV (more equity) gets you better rates and more loan options. For cash-out refinances, 75% LTV is common. Hard money lenders typically offer 65-75% of ARV.
Do I need PMI on investment property?▼
Investment properties don't have traditional PMI like primary residences. However, lenders compensate for higher risk through higher interest rates and stricter requirements when LTV exceeds 75-80%.
How does LTV affect my interest rate?▼
Lower LTV generally means lower rates. Lenders view lower LTV as less risky since there's more equity cushion. Expect better pricing at 75% LTV vs 80% LTV, and even better at 70% or below.
What is the maximum LTV for different loan types?▼
Conventional investment: 75-80% LTV. Hard money: 65-75% of ARV. DSCR loans: 75-80% LTV. Cash-out refi: 75% LTV. FHA/VA don't apply to investment properties.