Beginning today Fannie Mae is going to be reducing the maximum LTV they will accept by 5% if the property is in a declining market. Meaning if you were looking for 90% LTV on NOO be ready to put down that extra 5% depending on where your market is.
The ratio of the size of the loan compared to the value of the property.
Appraised value $100,000
Loan Amount 75,000
LTV is 75%
Or the purchase price, whichever is lower.
We do loan to value using the ARV (After repair value) so it is higher than the purchase price. That allows us to roll in the rehab costs and closing costs as long as it doesn’t go over 90% LTV.