HomeDSCR Glossary › LTV (Loan-to-Value)

LTV (Loan-to-Value)

The ratio of loan amount to appraised property value, expressed as a percentage. LTV = Loan Amount ÷ Appraised Value. A 75% LTV loan on a $400K property is $300K. DSCR loans typically cap at 80% LTV on strong-file purchases and 75% standard. See DSCR LTV Limits →

Why it matters on a DSCR loan

LTV is the lever that connects your down payment, your rate, and your DSCR: borrowing less improves pricing and shrinks the payment, which in turn lifts the coverage ratio. Investors commonly plan around a maximum-LTV quote and forget that program adjustments — property type, credit tier, cash-out versus purchase — can knock the ceiling down and force more cash to close. On refinances, remember LTV runs off the appraised value, so a conservative appraisal effectively lowers your borrowing power even if your rate quote hasn't changed.

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Reviewed by Arin Baghermian, Broker Owner — NMLS #1220456 · Last reviewed July 2, 2026 · DSCR Capital Partners is a brand of UTM Financial, LLC (NMLS #2591548).