What Is Loan-to-Value (LTV) in Real Estate Investing? How It Impacts Your DSCR, Bridge, and Fix & Flip Loans
When it comes to private real estate financing, one of the most important metrics lenders look at is your Loan-to-Value ratio, or LTV.
Whether you’re applying for a DSCR loan on a rental property, a bridge loan for a value-add acquisition, or a fix and flip loan, understanding how LTV works can help you secure better terms—and avoid leaving money on the table.
At QuickLend Capital, we work with investors from Brooklyn to Savannah, Charlotte to Austin, helping them structure deals that balance leverage, cash flow, and long-term value.
What Is Loan-to-Value (LTV)?
Loan-to-Value is the ratio between the amount of your loan and the appraised or purchase value of the property.
LTV = (Loan Amount ÷ Property Value) x 100
For example:
Purchase Price: $400,000
Loan Amount: $300,000
LTV = (300,000 ÷ 400,000) x 100 = 75%
Why LTV Matters to Lenders
LTV helps lenders assess risk. The higher the LTV, the more leverage (and therefore risk) they’re taking on. The lower the LTV, the more equity you have in the deal—which means more protection for the lender if something goes wrong.
Each loan type comes with its own LTV thresholds:
Typical LTV Limits by Loan Type
DSCR Loans (for rental properties):
Max LTV: 75–80% (purchase or rate/term)
Max LTV for cash-out: 70–75%
Strong DSCR ratios may allow for higher leverage
Bridge Loans (short-term, transitional deals):
Max LTV: 75–80% of "As-Is" value
Max LTC (Loan-to-Cost): Up to 85% in some cases
ARV (After-Repair Value) also considered on value-add projects
Fix & Flip Loans:
Max LTV: 85–90% of purchase price
Max LTC: Often up to 100% of renovation costs
Max ARV: 70–75% depending on experience and market
Ground-Up Construction Loans:
Loan-to-Cost: Up to 85%
LTV at exit typically 70–75% of completed value
How to Improve Your LTV Position
Bring more cash to close
Buy under market value
Improve the asset’s cash flow or condition
Build equity quickly through renovations or lease-up
Improve credit score and borrower profile
Lenders will often offer better pricing, fewer reserves, or more flexible terms when your LTV is conservative and your DSCR is strong.
Market Context: LTV in Action
In Brooklyn, investors use 75% LTV DSCR loans to refi small multis
In Greenville and Charlotte, fix and flip buyers are leveraging high ARV-based LTVs
In Texas, ground-up builders are combining low land basis with strong exit LTVs
In Savannah, Airbnb investors are using 70–75% LTV DSCR loans for stabilized STR refis
Why It Matters at QuickLend Capital
At QuickLend Capital, we assess your LTV as part of a total picture—including deal strength, borrower experience, and market conditions. We’re not just looking at numbers. We’re looking at your vision and execution.
We offer:
Flexible LTVs across DSCR, bridge, flip, and construction loans
Creative structuring to help you hit your goals
Fast closings and clear guidance from start to finish
Need help structuring your deal with the right leverage?
Contact QuickLend Capital today and let’s find the right LTV structure for your next investment.