#404 Loan-To-Value (LTV): Minimum, Maximum

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Creditors have loan policies that reflect the level of credit risk established by the institution's board of directors. Understand your LTV position and your options.

• The effects of LTV in a declining market
• 50% to 65% LTV for raw land
• 75% LTV for land development
• 75-80% LTV for commercial
• 85% LTV for construction
• The higher the LTV, the higher the risk
• Junior liens in a secondary position behind the senior lien

Importance to you - Give consideration where consideration is due. What goes up, often comes down. As pressures build…

Please listen to this podcast episode, and all the others at “Creditor Tools” at: NCARA.org

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