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loan to values (LTV)

Your Loan-to-Value is determined by calculating the percentage of your new loan compared to its existing market value or purchase price.  For example, if your home is worth $500,000 and you owe $400,000 then you have an 80% Loan-to-Value.

Note to Consumers Buying a Home...

If you are buying a new home most lenders will only accept the lower of the purchase price or the appraised value.  This means that if the appraised value comes in higher than the purchase price most lenders will not accept the higher value for calculating your down payment requirements.  Remember that your loan to value is based on the lower of the two.  If you are putting 20% down on a $500,000 home and the appraisal comes in at $475,000 - the bank will only loan you 90% of the $475,000 so you have to come up with 100% of the change in value.  Below are highlights of some programs available to SINGLE FAMILY RESIDENCES.  This information does not represent an offer to lend and should only serve as a tool for viewing some available limits in today's marketplace.  Learn more about the interest only programs available - contact a mortgage lender for your state.

 

 

PURCHASE / RATE & TERM REFINANCE:  LOAN-TO-VALUE MATRIX

(Each lender has different guidelines. Not all products are available in all states)

Definitions:

LTV = Loan to Value

CLTV = Combined Loan to Value
(Total of all Liens - 1st, 2nd, Home Equity Line etc...also known as TLTV - Total Loan to Value)

Assumptions:

Full Documentation for Income and Assets, New Home Purchase, Single Family Residence, Acceptable Credit and Employment History and other standard underwriting guidelines for US citizens.

Loan to Value Ratios Will Vary from Lender to Lender

Note:  Cash Out Refinance Transactions & Investment Properties will usually have lower allowable loan to values than the ones shown below.  Contact a mortgage professional for more info.


Loan Amount Primary Residence LTV Primary CLTV

2nd Home CLTV

Investment CLTV

Up to $400,000       95% 100%  95 / 100 % 85 / 90 %
$400,000 - $650,000       90% 100% 90 / 100 % 85 / 90 %

$650,000 - $750,000       90% 100% 80 / 100 %  

70 / 90 %


$750,000 - $1,000,000     80% 100% 80 / 100 % 70 / 90 %
$1,000,000 - $1,500,000       75% 100% 75 / 100 % 70 / 90 %

$1,500,000 - $2,500,000       70% 100% 70 / 100 % 70 / 90 %

Over $2,500,000
 
      70% 100% 70 / 100 % 70 / 90 %