LTV (Loan-to-Value Ratio)

The loan-to-value ratio compares what you borrowed to what the property is worth.

LTV = loan_amount / property_value

A $200,000 mortgage on a $250,000 property is 80% LTV.

What it changes

Lower LTV means a stronger equity position and less lender risk, which often earns better terms: lower rates, less (or no) mortgage insurance. Higher LTV means more leverage, stricter requirements, higher rates, and less cushion if rents soften or expenses rise.

Lenders pair LTV with DSCR: your maximum loan is the lesser of what the value supports and what the income supports.

Where you'll see it in Rescover

Financing inputs on every analysis are yours to set: change the down payment and the LTV, debt service, cash-on-cash, and shortfall risk all recompute. The Deal Wizard sizes the loan by the lesser of your maximum LTV and minimum DSCR, the same way a lender would.