REAL ESTATE UNDERWRITING

LTC

Also called: loan-to-cost · loan to cost ratio

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PLAIN-ENGLISH DEFINITION

Loan amount divided by total project cost, often used in development and renovation financing.

What it means in practice.

LTC is more common in construction, bridge and improvement scenarios than in stabilized-property loans.

Why it matters.

It is especially relevant where an improvement exchange intersects with construction financing.

Additional notes.

LTC is more common in construction, bridge and improvement scenarios than in stabilized-property loans.

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