Loan to Value Ratio

The formula for the loan to value ratio is generally used by loan officers and underwriters as part of evaluating an applicant's qualifications. Lending institutions have guidelines to determine if a
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Loan to Value Ratio Description

Determine the ratios between the loan amount and the customer income The formula for the loan to value ratio is generally used by loan officers and underwriters as part of evaluating an applicant's qualifications. Lending institutions have guidelines to determine if a loan applicant qualifies for the loan requested. If the loan to value ratio on a particular loan request is outside of the lending institution's guidelines, a higher down payment may be required.


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