LTV question

I feel pretty dumb asking this question, but I can’t seem to find a clear answer anywhere (yes, I did do a search here). When determining the LTV on a property that needs to be rehabbed, do you include the repair budget in the loan figure?

Would it be: $60k purchase/$100k ARV = 60% LTV
or would it be: $60k purchase + $10k repairs/$100k ARV = 70% LTV

There are NO dumb questions. All you need is information. With most lenders, it will be the LTV based off of the ARV. I hope this helps.


Yes, this scenario would be 70% LTV if you are obtaining a rehab loan.