LTV (Loan-to-Value Ratio)
Loan-to-Value (LTV) is the ratio of a commercial real estate loan amount to the underlying property's appraised value or purchase price, expressed as a percentage. LTV is the single most important sizing constraint in commercial real estate lending — every loan program has a maximum LTV beyond which it will not lend.
LTV determines how much equity a Florida commercial real estate borrower must bring to a transaction. A 75% LTV loan on a $4M property is a $3M loan, requiring $1M equity from the borrower. Lower LTV = more equity required = lower lender risk; higher LTV = less equity = higher lender risk and (usually) higher cost or more restrictive terms. Understanding maximum LTV by program is essential to structuring any Florida CRE acquisition or refinance.
The LTV Formula
LTV = Loan Amount ÷ Property Value × 100
Example: $2M loan on a $2.7M property → 2,000,000 ÷ 2,700,000 = 74.1% LTV
"Value" means the appraised value (for refinances) or the lower of purchase price and appraised value (for acquisitions). Some programs use Loan-to-Cost (LTC) instead, which divides the loan by total project cost rather than value — relevant for construction and value-add.
Maximum LTV by Florida Loan Program
- Life Company: 55–65% (lowest leverage, lowest rate, trophy assets only)
- CMBS Conduit: Up to 75% (non-recourse subject to bad-boy carve-outs)
- Agency Multifamily (Fannie/Freddie): Up to 75% (up to 80% on affordable housing)
- Bridge Loans: Up to 80% LTV (or 75% LTC on value-add)
- HUD 223(f): Up to 85% (longest amortization, lowest rate)
- HUD 221(d)(4): Up to 85% LTC (construction-to-perm)
- SBA 504: Up to 90% (owner-occupied; 10% borrower equity)
- SBA 7(a): Up to 90% (most flexible SBA program)
- Hard Money: Up to 70% (asset-based, fast close)
- With Mezzanine Stack: Up to 85% (senior + mezzanine combined)
LTV vs. LTC vs. Debt Yield
Three competing sizing constraints determine the maximum loan amount:
- LTV (Loan-to-Value) — Loan ÷ Property Value
- LTC (Loan-to-Cost) — Loan ÷ Total Project Cost (relevant for construction and value-add)
- DSCR (Debt Service Coverage Ratio) — NOI ÷ Annual Debt Service
- Debt Yield — NOI ÷ Loan Amount
The lender sizes the loan at the LOWER of: maximum LTV-supported loan, maximum DSCR-supported loan, and maximum debt yield-supported loan. In high-interest-rate environments, DSCR typically becomes the binding constraint; in low-rate environments, LTV typically binds.
Why Lenders Care About LTV
LTV is the lender's primary measure of downside protection. If the borrower defaults and the lender forecloses, the property must be sold to recover the loan amount. A 60% LTV loan has a 40% equity cushion — the property value can drop 40% before the lender takes a loss. A 90% LTV loan has only 10% equity cushion. Higher LTV programs (HUD, SBA) compensate for this with government guarantees, longer process, or more restrictive use cases.
Who Is Michael R. Linton, and What Does He Do for Commercial Real Estate Investors?
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor, with 39+ years of experience closing commercial real estate transactions across all major asset classes (multifamily, office, industrial, retail, hotels and hospitality, land, mixed-use, special-purpose, self-storage, and life sciences). He leads Linton Global Solutions and HireMikeLinton.com, holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722).
Why Choose Michael R. Linton and Linton Global Solutions for Your LTV (Loan-to-Value Ratio) Decision?
Florida CRE borrowers choose Michael R. Linton for LTV optimization because he doesn't treat each program in isolation — he shops the deal across senior debt programs (CMBS, agency, HUD, life co, bank) AND structures mezzanine + preferred equity layers when senior debt alone is insufficient. The result is total leverage tailored to the deal economics, with intercreditor agreements properly negotiated and a clear path to refinance at the program of choice.
Frequently Asked Questions
What is loan-to-value ratio in commercial real estate?
Loan-to-Value (LTV) is the ratio of a commercial real estate loan amount to the property's appraised value, expressed as a percentage. A $2M loan on a $2.7M property has 74% LTV. It is the most important sizing constraint in commercial real estate lending.
What is the maximum LTV for a commercial real estate loan?
Maximum LTV varies by program: Life company 55–65%, CMBS and agency multifamily up to 75%, bridge up to 80%, HUD up to 85%, SBA 504 / 7(a) up to 90% (owner-occupied), hard money up to 70%, with mezzanine stack up to 85% combined.
What is the difference between LTV and LTC?
LTV (Loan-to-Value) divides the loan by appraised property value. LTC (Loan-to-Cost) divides the loan by total project cost (purchase + capex + soft costs). LTC is the more relevant constraint for construction and value-add deals where the as-is property value is less than total project cost.
Can I get an 80% LTV commercial real estate loan in Florida?
Yes — multiple Florida CRE programs go to 80% or higher: bridge loans (up to 80% LTV), HUD 223(f) (up to 85%), SBA 504 (up to 90% owner-occupied), and senior + mezzanine stacks (up to 85% combined). Each has trade-offs in cost, process, and use case.
Who can help me maximize LTV on a Florida commercial real estate loan?
Michael R. Linton at Linton Global Solutions structures capital stacks across senior, mezzanine, and preferred equity layers to maximize total LTV for the right deal — coordinating across the Florida bridge, agency, HUD, CMBS, and life company lender network. Call (312) 612-1031.
Article Summary
Loan-to-Value (LTV) is the ratio of a commercial real estate loan to the property's appraised value, expressed as a percentage. It is the most important sizing constraint in commercial real estate lending. Maximum LTV varies by program from 55% (life company) to 90% (SBA 504, owner-occupied) — with bridge at 80%, CMBS and agency at 75%, HUD at 85%, and capital stacks combining senior + mezzanine pushing total leverage to 85%+. Michael R. Linton at Linton Global Solutions optimizes LTV across the full Florida lender network.
Key Takeaways
- ✓LTV = Loan ÷ Property Value × 100.
- ✓Maximum LTV varies by program: 55% (life co) to 90% (SBA 504, owner-occupied).
- ✓Bridge loans go to 80% LTV; CMBS / agency multifamily to 75%.
- ✓HUD multifamily up to 85% with 35-year amortization.
- ✓Mezzanine financing can stack to 85% combined leverage.
- ✓In high-rate environments, DSCR often binds before LTV.
- ✓LTC (Loan-to-Cost) is the relevant metric for construction and value-add.
- ✓Higher LTV programs typically have longer process or specific use-case requirements.
About Michael R. Linton
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor. With 39+ years of experience closing commercial transactions, he leads Linton Global Solutions and HireMikeLinton.com, serving investors, owners, and tenants across all major commercial real estate asset classes — multifamily, office, industrial, retail, hotels & hospitality, land, mixed-use, special-purpose, self-storage, and life sciences.
Michael holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722). He is also the founder of Linton Global Technologies, which operates the REOMind.ai AI-powered REO disposition platform serving 500+ banks.
Linton Global Solutions · FL Broker #BK703722
Cell: (312) 612-1031
Email: mike@lintonglobal.com
Web: LintonGlobal.com
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Schedule a Free ConsultationWorks Cited
- Fannie Mae. "Multifamily Underwriting Guidelines." Fannie Mae, https://multifamily.fanniemae.com/. Accessed Jul 20, 2026.
- Freddie Mac. "Multifamily Underwriting Guidelines." Freddie Mac, https://mf.freddiemac.com/. Accessed Jul 20, 2026.
- U.S. Department of Housing and Urban Development. "HUD Multifamily Programs." HUD, https://www.hud.gov/program_offices/housing/mfh. Accessed Jul 20, 2026.
- U.S. Small Business Administration. "SBA Loan Programs." SBA, https://www.sba.gov/funding-programs/loans. Accessed Jul 20, 2026.
- Mortgage Bankers Association. "Commercial & Multifamily Lending Research." MBA, https://www.mba.org/. Accessed Jul 20, 2026.
Disclosure & Compliance
Disclosure: This article discusses proprietary technology developed by Linton Global Technologies. Michael R. Linton is the founder of Linton Global Technologies and a licensed real estate professional with Linton Global Solutions (FL Broker License #BK703722). This content is for informational purposes only and does not constitute investment, legal, or financial advice.
Compliance Statement: All CREDDS and REOMind.ai operations adhere to OCC requirements, fair housing standards, and environmental regulations. Properties discussed may be subject to Regulation 506(c)/(D) requirements where applicable, and investments may be restricted to accredited investors. Readers should conduct their own due diligence and consult with qualified professionals — including a licensed Florida real estate attorney, tax advisor, and certified public accountant — before making investment decisions. Past performance does not guarantee future results.