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#2126525 - 04/17/17 04:04 PM LTV Question - Bridge Loan
mtgbnkr Offline
New Poster
Joined: Jun 2014
Posts: 7
LTV on bridge loan is calculated how? Is LTV based only on new property being acquired or on both properties? I've got folks that can't agree.
Example: Existing Home is F/C valued $100,000. New Home sales price $200,000. Taking both properties and financing $200,000 for acquisition. Is LTV 100% or 67%? -- Scripture and verse please. Thanks!

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Lending Compliance
#2126528 - 04/17/17 04:14 PM Re: LTV Question - Bridge Loan mtgbnkr
Cracked Egg Offline
Joined: Sep 2013
Posts: 50
Use both properties:

Appendix A to Subpart A of Part 365—Interagency Guidelines for
Real Estate Lending Policies:

"... In situations where a loan is fully cross-collateralized by two or more properties or is secured by a collateral pool of two or more properties, the appropriate maximum loan amount under supervisory loan-to-value limits is the sum of the value of each property, less senior liens, multiplied by the appropriate loan-to-value limit for each property..."
"Do or do not ... There is no try"

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