LTV Calculator

Loan-to-Value (LTV) is the ratio of the loan amount to the appraised value or purchase price of a property. For example, a $750,000 loan on a $1,000,000 property is 75% LTV. LTV is one of the most important metrics lenders use to assess risk.

Most conventional commercial lenders cap LTV at 70-75%. Life insurance companies typically max at 60-65% but offer the best rates. SBA 504 loans allow up to 90% LTV. Lower LTV generally means better rates and terms.

LTV has a direct impact on pricing. Lower LTV (more equity) typically earns 25-75 basis points lower rates. Lenders view lower leverage as lower risk and price accordingly.

Yes, but options are limited. SBA 504 loans offer up to 90% LTV for owner-occupied properties. Mezzanine or preferred equity can be layered behind a senior loan to achieve 85-90% of total capitalization, though at higher blended cost.