Combined Loan To Value ratio,CLTV,CLTVR,LTV

Combined Loan To Value ratio (CLTV) is the proportion of two or more loans secured by a property in relation to its value. The aggregate principal balances of all mortgages on a property divided by its appraised value or Purchase Price, whichever is less. It is 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. Distinguishing CLTV fr