LTV, or loan-to-value ratio, is another financial ratio that lenders use to assess a borrower’s risk. The higher the LTV, the riskier the loan. A loan with an LTV of 80% is considered high risk because it means that the borrower has put up little equity in the property. A loan with a lower LTV is considered less risky because it means that the borrower has more equity in the property.
If you’re considering a DSCR loan for your next real estate investment, contact LBC Mortgage today. We can help you find the right loan for your needs and answer any questions.