CalculateRealEstateROI

Financing

What's the difference between LTV and LTC?

LTV uses appraised value as denominator; LTC uses total project cost (acquisition + rehab + closing).

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

LTV uses appraised value as denominator; LTC uses total project cost (acquisition + rehab + closing).

Expanded explanation

LTC dominates BRRRR and value-add lending. A lender might offer 80% LTC, 75% LTV — whichever is lower controls draw.

Examples

  • $100k purchase + $40k rehab = $140k cost; 80% LTC = $112k loan.

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