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Loan-to-Value Ration (LTV)
The ratio of a mortgage loan to the market value of the property.
For instance, if the market value of the property is $200,000, and the bank will loan a maximum of 80% LTV, the largest possible mortgage on that property will be 0.8 x $200,000 = $160,000.
This ratio is key, because most banks will not make loans for real estate investments if the LTV is greater than 80%. This is one very unique quality for the smaller balance commercial loans offered through Steelhead Capital, where you can now receive commercial loans in excess of 90% LTV.
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