LTV (Loan-to-Value Ratio)

What is LTV?

LTV stands for Loan-to-Value ratio. It expresses the loan size as a percentage of the property’s value. On a purchase, the lender uses the LESSER of the purchase price or the appraised value as the denominator. So if you offer $500,000 on a property that appraises at $480,000, the lender treats the value as $480,000 for LTV purposes — and any loan amount above 80% of $480,000 would exceed an 80% LTV cap, even though it looks like 80% of the purchase price.

On a refinance, the appraised value alone determines LTV. Higher LTV means less borrower equity in the property and more lender risk — so it comes with stricter underwriting and (usually) higher rates. Lower LTV means more equity, less risk, and better pricing tiers.

LTV interacts with loan amount, FICO, and DSCR on every program. A scenario at 80% LTV with 700 FICO and 1.10 DSCR will price differently than 70% LTV with 740 FICO and 1.25 DSCR — the lower-LTV scenario is the stronger file.

How LTV applies at Total Quality Lending

Total Quality Lending’s DSCR program caps at 80% LTV at the top tier (740+ FICO, DSCR ≥ 1.00, loan ≤ $2.5M). Prime Time goes to 90% LTV on a primary residence at 720+ FICO with ≤$1.5M loan (Standard, Bank Statement, or 1099 doc paths). Multi-Unit DSCR caps at 75% LTV. Foreign National DSCR maxes at 70% LTV.