My questions relates to construction loans and supervisory loan to value. SLTV Guidelines say 80% loan to value on commercial real estate construction. My loan is construction phase, land already owned by borrower.

Is my loan amount limited to 100% of construction costs or 80% of completed appraised value. Is it the lesser of the two? Can I have a loan that actually has "cash out" plus construction costs not to exceed 80% of appraised value.

I have really researched this. My eyes are bleeding and I thinks it's a case of just not getting this!

My understanding has been that it would be 80% of the "as completed" value but disbursements cannot exceed 100% of the construction cost.