Loan To Value (LTV)

What Does It Mean?

Loan-To-Value (LTV) is a simple ratio used to show the lender's loan amount compared to the value of your property. LTV is one of the methods used by both conventional and private lenders to determine a loan’s perceived risk. A lower LTV indicates that you, as the borrower, have more protective equity in the property to secure the loan.

How Is LTV Calculated?

As an example, consider a property estimated to be worth $100,000. A lender that requires a 70 percent LTV would loan you $70,000 on that property.

$70,000 / $100,000 = 70%

How Does It Affect My Hard Money Loan?

Your LTV will typically affect your loan application in two ways - first, your lender will use maximum LTV guidelines to determine how much money you will be allowed to borrow. Understanding your lender's maximum LTV guidelines will give you a better understanding of how much leverage you will be able to obtain when considering a project. Secondly, loans with higher LTVs may cost more, both in interest rate and origination points. Loans with higher LTVs are typically riskier transactions for your lender, so your lender may require higher returns in exchange for this risk.

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Thinking about a new project? Ready to get an approval? We want to make your life easier with our flexible process and knowledgeable staff. Get started with our online pre-approval and you’ll be one step closer to a fast closing.

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LYNK Capital is a fast-growing hard money lender offering hard money fix and flip loans, rehab and renovation loans, construction loans, and rental property loans. LYNK Capital is a direct private lender that offers lending solutions to real estate investors, contractors, builders, and developers.

Hard Money Fix and Flip Loans

LYNK Capital is your fix and flip lender. We offer hard money fix and flip loans for real estate investors. Fund your rehab or renovation project quickly with competitive interest rates and origination fees. Faster than bank financing with more flexible loan terms. Purchase and refinance options available.

Hard Money Construction Loans

Hard money new construction loans for builders and developers. Fund your new construction project quickly with competitive interest rates and origination fees. Faster than bank financing with more flexible loan terms. Purchase and refinance options available.

Rental Loans

Single-family rental loans for real estate investors. Borrow up to 80% of your property value. Finance your investment property quickly and easily.

Where Does LYNK Capital Lend?

LYNK Capital makes hard money fix and flip and construction loans in: Alabama, Connecticut, District of Columbia, Delaware, Florida, Georgia, Illinois, Indiana, Kentucky, Maryland, Massachusetts, Michigan, Missouri, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, and West Virginia.

Get a hard money loan for your investment property today with our online rate quote and pre-approval.

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