What is loan-to-value?
Published October 1, 2026 · 1 minute read
The answer
Loan-to-value compares the loan amount with the value measure used by the lender. For example, a $300,000 loan divided by a $400,000 value equals 75%. The lender may use an appraisal or another specified basis.
The ratio does not measure the amount of cash needed for furnishing, closing, or reserves. Keep those additional uses in your acquisition budget.
Further reading
These resources provide additional context. Check the official rules and documents that apply to your own situation.
This answer is general education. Apply it to the property's actual location, agreements, and circumstances. Where a decision requires professional advice, use a qualified adviser.
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