LTV

LTV (loan-to-value, also loan-to-appraisal) — the loan amount as a percentage of the property’s appraised value, which is the lender’s number, not the seller’s price. Pag-IBIG lends up to 90–95%; banks typically 70–80%, tightening to 60–70% for investor and foreclosure purchases. Higher LTV means less cash down, fatter cash-on-cash, thinner DSCR, and a harder repricing stress — the dial that trades fragility for efficiency. The appraisal-gap trap lives here: if the appraisal comes in below the agreed price, the difference is yours to produce in cash.

First used in: 3.1 · Leverage: the sword’s both edges