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.
