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Maximum Loan-to-Value Ratio

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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%.



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Nationwide is reducing its maximum loan-to-value ratio from 95% to 90% on all products for new borrowers except its three-year fixed-rate mortgage and three-year tracker, both available to people looking to borrow 95% of a property's value.
All three expected to increase their maximum loan-to-value ratios - which one bank revealed currently stands at 80% of the value of a commercial building.
As of last summer, when the survey was produced, maximum loan amounts to nursing homes had decreased, maximum loan-to-value ratios declined to 77 percent on average, and required debt-service coverage ratios were as high or higher, when compared to 2000 survey results.
 
 
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