Combined Loan To Value Ratio - CLTV Ratio

Combined Loan To Value Ratio - CLTV Ratio
A ratio used by lenders to determine the risk of default by prospective homebuyers when more than one loan is used. In general, lenders are willing to lend at CLTV ratios of 80% and above to borrowers with a high credit rating.

Combined Loan To Value Ratio (CLTV Ratio)

For example, let's assume that an individual is purchasing property valued at $200,000. This individual takes out two loans for the property, one for $100,000 and another for $50,000. The combined loan to value ratio would be 75%, (($100,000 + $50,000) / $200,000).


Investment dictionary. . 2012.

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  • combined loan to value ratio — ( CLTV) A measure of collateral coverage provided by a consumer borrower s residence. The borrower s total senior and subordinated loan balances divided by the appraised value of the borrower s residence. American Banker Glossary …   Financial and business terms

  • Loan-to-value ratio — The loan to value (LTV) ratio expresses the amount of a first mortgage lien as a percentage of the total appraised value of real property. For instance, if a borrower borrows $130,000 to purchase a house worth $150,000, the LTV ratio is… …   Wikipedia

  • Loan to value — The loan to value (LTV) ratio expresses the amount of a first mortgage lien as a percentage of the total appraised value of real property. For instance, if a borrower wants $130,000 to purchase a house worth $150,000, the LTV ratio is… …   Wikipedia

  • CLTV ratio — combined loan to value ratio ( CLTV) A measure of collateral coverage provided by a consumer borrower s residence. The borrower s total senior and subordinated loan balances divided by the appraised value of the borrower s residence. American… …   Financial and business terms

  • CLTV — combined loan to value ratio (CLTV) A measure of collateral coverage provided by a consumer borrower s residence. The borrower s total senior and subordinated loan balances divided by the appraised value of the borrower s residence. American… …   Financial and business terms

  • CLTV (disambiguation) — CLTV can mean:* In Finance, the combined loan to value ratio * In Marketing, the Customer lifetime value of a customer. * An acronym for Chicagoland Television, a Chicago area local news channel …   Wikipedia

  • Asset-based loan — An asset based loan is a loan, often for a short term, secured by a company s assets. Real estate, A/R, inventory, and equipment are typical assets used to back the loan. The loan may be backed by a single category of assets or some combination… …   Wikipedia

  • Mortgage underwriting in the United States — is the process a lender uses to determine if the risk of offering a mortgage loan to a particular borrower under certain parameters is acceptable. Most of the risks and terms that underwriters consider fall under the three C’s of underwriting:… …   Wikipedia

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