The term LTV means Loan-To-Value which is a proportion of the loan amount to
the appraised value or purchase price of the home. For instance, if you are
buying a home for $100,000, putting $20,000 down and financing $80,000, the LTV
is 80%. If you are purchasing a home that appraises for more than the sale
price, the LTV will be calculated on the basis of the sale price. If the
appraisal is lower than the sales price, the LTV will be calculated on the
appraised value.
