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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.
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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
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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
Frequently asked questions
What is the difference between LTV and CLTV?
LTV (loan-to-value) measures the first mortgage balance as a percentage of property value. CLTV (combined loan-to-value) measures all liens — first mortgage, second mortgage, HELOC, and any subordinate debt — as a combined percentage of property value. For DSCR lending, LTV is the primary metric because DSCR lenders are almost always in first lien position. CLTV matters when a second lien exists and needs to be disclosed or subordinated.
What LTV do most DSCR lenders allow?
For purchases: up to 80% LTV for DSCR ≥ 1.0 with 680+ FICO; 75% for DSCR 0.75–0.99; 65–70% for sub-0.75 or no-ratio programs. For cash-out refinances: typically 75% max. For rate-and-term refinances: up to 80% in some programs. These are typical ranges — individual lender matrices vary by property type, FICO, loan size, and product.
Can I have a second mortgage or HELOC behind a DSCR first lien?
Some DSCR lenders allow subordinate financing, but many do not. If a second lien exists, you must disclose it — undisclosed subordinate debt is mortgage fraud. Lenders that allow seconds will typically require the CLTV to stay within their overall matrix (often 80% CLTV max). Many DSCR programs prohibit any subordinate financing as a condition of approval.
How does LTV affect my DSCR loan rate?
LTV is one of the two biggest pricing variables in DSCR lending (alongside DSCR ratio itself). Higher LTV = higher rate, because the lender has less equity protecting them. A typical rate add-on for 75–80% LTV vs 65% LTV is 0.25–0.50%. At scale, reducing LTV by bringing a larger down payment can save meaningful rate.
What property value should I use — purchase price or appraised value?
For a purchase: lenders use the lower of purchase price or appraised value. If you're buying at $300,000 but the appraisal comes in at $290,000, the lender lends against $290,000. For a refinance: lenders use the appraised value at the time of refi. This calculator lets you input any value — use the best estimate of current fair market value.
Does LTV change after closing?
Yes — continuously. As your loan amortizes (or you make extra principal payments), your balance falls. If property values rise, your LTV improves on both sides. Tracking LTV over time matters for future refinancing strategy: as you cross below 75% and then 65%, you unlock better program options and pricing.
What is 'equity' in this context?
Equity = property value minus total debt (all liens). It represents your net ownership stake in the asset. On a $400,000 property with a $280,000 first mortgage and $20,000 HELOC, equity = $100,000 (25%). Equity is what you'd keep after selling (minus transaction costs). It also determines how much cash you could extract in a cash-out refinance.
Is there a maximum CLTV for DSCR loans?
Yes — when subordinate financing is permitted at all. Most DSCR lenders that allow second liens cap CLTV at 80% (sometimes 75% depending on program). But again, many DSCR programs prohibit subordinate financing entirely. This calculator is most useful for modeling where your LTV/CLTV sits today and understanding how it compares to program thresholds.