Loan to Value for Different Property Types

rules, board, circles-1752415.jpg

List of LTV’s for different investment properties
Posted by: Jim Aug 5 2004, 11:44 AM
Is there a list of approx. LTV’s for various Commercial Investments i.e. Hotels, Convenience stores, Apartment Buildings, etc
Posted by: loanuniverse Aug 5 2004, 12:12 PM

There is no list of loan-to-values that would apply to all lenders. The list is created in-house and it varies from lender to lender {even similar ones}. Granted the differences are not that big, but some lenders are not interested in one type of property and their loan-to-values reflect this aversion.

For example, one lender might decide to lend only 75% on commercial buildings, but another one might go 80%.

You should also know that banks not only have their in-house limits, but are also subject to “regulatory limits”. This means that non-traditional lenders can and usually will give more lenient terms in structure. However, it has been my experience that this is not the case when it comes to pricing.

Also remember that commercial banks are regulated institutions and when it comes to LTV’s this is our Bible Comptroller’s Handbook CRE Lending

Good luck.
Author: Commercial Loan Underwriter