Why did I not get a loan for 70% of ARV? Jordan Brewer
If there is a higher risk associated with lending on your property, there may be a loan-to-value (LTV) deduction applied. The maximum acceptable LTV deduction is 20% - any higher and the property is considered too risky to receive funding.
Deductions may be taken on the property for any major risk factors. Not all situations will have deductions applied. Here are the most common deductions which may be applied:
Crime Rate
High crime rate - 10% LTV deduction
Moderate crime rate - 5% LTV deduction
Proximity to Commercial Properties
Commercial property visible from subject property - 10% LTV deduction
Commercial property not visible but within 5 blocks - 5% LTV deduction
Busy Street
If more than one of these situations applies, only a total of a 10% LTV deduction will be made
On or backs 45+ MPH street - 10% LTV deduction
On or backs 4+ lane street - 10% LTV deduction
On or backs double lined street - 5% LTV deduction
45+ MPH street within 1-2 blocks - 5% LTV deduction
4+ lane street within 1-2 blocks - 5% LTV deduction
A full list of risk factors can be found on our Advanced Deal Analysis (ADA) page. You can access the ADA in the Member's Area under the 'Software' tab.
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