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 ?
Release date- 01082019 - Noting that FHA endorsements with cash-out refinances have more than tripled since 2013, the Federal Housing Administration today moved to reduce the maximum loan-to-value ratio on a cash-out refi mortgage from 85% to 80%.
The maximum loan-to-value ratio is 70% for first-time buyers and many mortgages appear to be originated under even tighter terms.
Draft legislation for covered bonds has not been published, but media reports indicate that eligible assets for mortgage covered bonds will include primary mortgage loans with a maximum loan-to-value ratio of 80 per cent.
Historically, the commitment might have provided for a maximum loan-to-value ratio of 80 percent of the "as complete" value of a commercial construction project.
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 70.0%.
The mortgage law provides, among other things,a procedure for banks and others to become licensed to provide mortgage finance, and a maximum loan-to-value ratio of 70 per cent.
Further, the special purpose subsidiaries now collectively own 54 aircraft and related equipment and leases, with an average appraised base value resulting in an initial loan-to-value ratio of about 55% as of 31 December 2012, while the maximum loan-to-value ratio remains at 63%.
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.

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