Loan-to-Cost (LTC) Ratio
Bottom Line Up Front (BLUF): Fix-and-flip, bridge, and ground-up construction lenders underwrite both Loan-to-Cost (LTC) and Loan-to-After-Repair-Value (LTARV) to ensure the investor has skin in the game while funding up to 100% of vertical renovation costs.
Underwriting Formula / Rule
LTC = (Initial Acquisition Advance + Rehab Holdback) ÷ (Purchase Price + Rehab Budget).
Wholesale Shelf Benchmark
Up to 85%–90% LTC for experienced operators (3+ completed flips in 36 months).
Frequently Asked Underwriting Questions
Do first-time flippers qualify for high LTC?
First-time investors typically qualify for 75%–80% LTC + 100% of rehab (capped at 65%–70% ARV).
Arranged by Loan Daddy LLC (NMLS #2827624 · (480) 485-1229 · quotes@loandaddy.ai). Business-purpose investment properties only.