LTV, equity, and why 90% means something different here

Loan-to-value (LTV) is the percentage of a property's value that your lender is willing to finance. If a property is worth $1,000,000 and we offer 90% LTV, the loan amount is $900,000 and you bring $100,000 plus closing costs.

Three things to know:

1. The value matters. LTV is calculated off appraised or as-is value, not purchase price. If you're buying below market, you may borrow more than the contract price.

2. Equity is your real protection. A 60% LTV loan against a $5M property leaves $2M of equity behind. That equity is what protects the lender — and it's why we can underwrite on the asset rather than the borrower's FICO.

3. 100% financing is real. For the right deal — strong equity in additional collateral, or a heavily under-market purchase — we structure 100% of purchase price. It's not standard, but it's available.

The right LTV is the one that makes your deal work. Bring us the project; we'll structure to it.