Loan-to-Value (LTV)

A method for sizing loans in which the loan proceed is calculated by taking a percentage of the appraised value of a property.

% of Purchase Price

In regards to the loan amount method in financing: Calculates the loan proceeds as percentage of the purchase price of the property.

% of Market Value

In regards to the loan amount method in financing: This calculation method determines the loan proceeds by first estimating the market value of the property using a cap rate, and then applying the inputted Loan-to-Value (LTV) percentage on the estimated market value.