Maximum Loan-to-Value Ratio

Maximum Loan-to-Value Ratio

The maximum allowable ratio of loan-to-value (LTV) on any loan program.

Generally, these are set by mortgage insurers or by lenders and can range up to 100%, although some programs will go above 100%.

References in periodicals archive ?
The law proposed several changes, including banks and other financial institutes becoming licensed to offer mortgages up to a maximum loan-to-value ratio of 70.
The maximum loan-to-value ratio of mortgage loans for standalone car park spaces will be set at 40% and the maximum loan tenor at 15 years.
The maximum loan-to-value ratio is 70 percent on conforming loan amounts.
Brough concludes that: "Whilst we don't want to see the return of the 100% LTV mortgage a return to 90% based upon todays realistic values would certainly fuel the housing market nationwide" KEY STATISTICS 48% of respondents say that land values have risen slightly, but 43% indicate no change 30% of respondents report that the maximum loan-to-value ratio available for debt finance was 60%.
According to an April 30 bulletin, the KDCU said it recently reviewed some MBLs that exceeded the maximum loan-to-value ratio of 80%.
However, most real estate funds have limitations imposed by the fund documents as to the maximum amount of debt they can incur--typically a maximum loan-to-value ratio ranging from 60 to 80 percent.
On conventional loans, the maximum loan-to-value ratio is typically 90 percent - which means lenders will make a loan for 90 percent of the home's appraised value - for refinances in which borrowers are seeking to get some cash back, but "it comes at a pretty hefty price," LaVassaur says.
95% until December 30, 2006 allows maximum loan-to-value ratio of 95%, with the arrangement fee cut from pounds 200 to pounds 395.
5% = Interest rate (monthly payments) 75% = Maximum loan-to-value ratio 9.
Mezzanine debt, as it's called, is high-yield, high-risk financing for commercial properties that need more debt than the maximum loan-to-value ratio allowed by lenders, according to Pergolis Swartz Associates, one of the most active commercial mortgage brokerage firms in the New York area.
For off-plan properties, the association is proposing maximum loan-to-value ratio be fixed at 50 per cent.
The proposed rule requires QRM refinance loans to have a maximum loan-to-value ratio of 75 percent and a maximum LTV of 70 percent for a cash-out refinance.

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