Free calculator
LTV / CLTV Calculator
Calculate your loan-to-value and combined loan-to-value ratio — and see exactly which DSCR lending tier your property falls into.
Last updated:
LTV / CLTV
Calculate your loan-to-value
Current appraised or market value
Optional
Optional — rare for DSCR
Results
LTV (first lien only)
Standard DSCR
65–75% — mainstream DSCR lending range. Most purchase and refi programs fit here.
- Property value
- $400,000
- First mortgage
- $280,000
- Total debt
- $280,000
- Equity
- $120,000
- Equity %
- 30.0%
LTV = first mortgage ÷ property value. CLTV = all liens ÷ property value. DSCR lenders care most about LTV (their first-lien position). CLTV matters if you're asking a lender to subordinate or if another lien exists on the property.
DSCR lender LTV tiers
| LTV range | Tier | DSCR lender context |
|---|---|---|
| ≤ 65% | Conservative | Best pricing, widest lender pool, strong DSCR not required |
| 65–75% | Standard | Mainstream DSCR purchase & refi; most programs qualify |
| 75–80% | Aggressive | Purchase only for 1.00+ DSCR; cash-out typically capped at 75% |
| > 80% | Restricted | Very limited DSCR options; consider conventional or portfolio lending |
Find the right LTV program
We shop 1,000+ DSCR lenders — top 3 offers in one hour. No credit pull.
What is LTV and why does it matter?
Loan-to-value (LTV) is the ratio of your mortgage balance to the property's market value. It measures how much of the property is financed versus owned outright.
LTV = Loan Balance ÷ Property Value × 100
For DSCR lenders, LTV is a primary risk variable — alongside DSCR ratio and credit score. A lower LTV means the borrower has more equity at stake, and the lender has a larger cushion against default and property value decline. DSCR lenders price based on a 2D matrix: DSCR × LTV. Better LTV → lower rate, typically 0.25–0.50% per tier.
Combined LTV (CLTV)
CLTV includes all liens against the property — not just the first mortgage. If a property has a $250,000 first mortgage and a $30,000 HELOC, CLTV is ($250K + $30K) ÷ property value.
For most DSCR transactions, CLTV equals LTV because DSCR lenders are in first position and don't allow subordinate financing. But if you have a legacy HELOC, a seller-carry second, or a hard-money loan that needs to be subordinated, CLTV becomes the relevant number.
The DSCR × LTV pricing grid
Lender rate matrices combine DSCR and LTV to determine your price. A simplified view:
| LTV range | DSCR req. | Typical use | Rate add-on |
|---|---|---|---|
| ≤ 65% | None / 0.75+ | All-cash refi, conservative equity position | −0.125% to 0 |
| 65–75% | 0.75+ | Standard purchase and cash-out refi | baseline |
| 75–80% | 1.0+ | Purchase only; rate-and-term refi | +0.125–0.25% |
| > 80% | N/A | Not available for DSCR; conventional or portfolio only | N/A |
How LTV changes over the life of a loan
LTV improves naturally through two forces:
- Amortization: each monthly P&I payment includes some principal paydown. On a 30-year $250,000 loan at 7.25%, you pay down roughly $3,500–4,500 of principal in year 1, accelerating slightly each year. After 5 years, you've paid down about $18,000 — moving LTV by ~7% on a $250,000 property value.
- Appreciation: as property value rises, the same loan balance becomes a lower LTV. A property that appreciates from $300,000 to $340,000 drops LTV from 75% to 66% (assuming $225,000 loan) — even without making a single extra payment.
Tracking LTV over time is critical for refinancing strategy. As you cross 75% → 70% → 65%, you qualify for better program tiers, lower rates, and cash-out refinancing at increasingly favorable terms.
Purchase vs refinance LTV caps
DSCR lenders apply different LTV caps to different transaction types:
- Purchase: up to 80% for DSCR ≥ 1.0, 680+ FICO on SFR / 2–4 unit. 75% for DSCR 0.75–0.99. Some programs allow 80% on condos with DSCR 1.25+.
- Rate-and-term refi: similar to purchase — up to 80% in most programs for qualifying DSCR and credit.
- Cash-out refi: typically 75% max. This is the most commonly misunderstood constraint — many investors assume cash-out works at 80% like purchases, but it almost always caps at 75%.
- Delayed financing: special program for investors who purchased all-cash; proceeds limited to documented all-in cost, usually up to 75% of purchase price.
Continue with related calculators
- Max Loan Calculator — determine the largest DSCR loan your property can support
- Cash-Out Refi Calculator — model proceeds at various LTVs
- DSCR Calculator — verify coverage at your loan amount
- Get matched with lenders for live pricing at your LTV