LTV guidelines

Posted By: beegee

LTV guidelines - 03/23/05 05:12 PM

Our loan policy states the following:

Unimproved Land
Individual purchases of raw land which have limited access, utilities, improvements and marketability, shall be limited to 65% of cost or appraised value, whichever is less.

Individual purchases of raw land which have good access, utilities on or very near the property as well as excellent marketability shall be limited to 75% of Cost or appraised value, whichever is less.

My question is: Is the 75% out of line with the guidance?

Thanks
Posted By: HRH Okie Banker

Re: LTV guidelines - 03/23/05 06:30 PM

Those values are in line with OCC Real Estate Lending Policies for Supervisory Loan to Value Limits. See OCC Advisory Letter AL 2003-7:

Raw Land = 65%
Land Development = 75%