The mortgage-to-worthy of (LTV) proportion is the proportion involving the completely new principal loan amount and you may the new appraised worth of the newest collateral

To qualify for brand new safe harbor, a great mezzanine loan must satisfy the adopting the criteria: LTV ratios are usually expressed given that a portion of your collateral’s appraised really worth. Eg, if for example the guarantee features an appraised property value $100 billion plus the lender’s limit permitted LTV ratio try 55%, then […]