See all three leverage ratios lenders use — loan-to-value, loan-to-cost, and loan-to-ARV — and, crucially, which one actually caps your loan.
Estimates for informational purposes only — not a loan offer, commitment, financial advice, or a lending decision. Program limits shown are illustrative and vary by lender.
Private lenders rarely quote a single leverage number. They underwrite to both loan-to-cost and loan-to-ARV, then lend the smaller of the two. LTC (loan ÷ purchase + rehab) keeps you from over-leveraging what you spend; LTARV (loan ÷ after-repair value) keeps the loan sensible against the finished value. This calculator shows both maximums and names the one that binds — the number that actually determines your loan.
If LTC is the constraint, a higher ARV won't get you more money — you're already spending near the program's cost limit. If LTARV binds, tightening your rehab budget or negotiating the purchase down is the lever. Knowing which one is holding you back tells you exactly where to push.
LTV compares the loan to the property's as-is value. LTC compares it to your total cost (purchase + rehab) — what you're actually spending. LTARV compares it to the after-repair value the project will be worth when finished.
LTC protects the lender against overpaying on the way in; LTARV protects against an optimistic ARV on the way out. Your loan is capped by whichever limit is tighter — the 'binding constraint.'
This tool computes the max loan under each limit and highlights the smaller one. If LTC binds, you're spending a lot relative to the finished value; if LTARV binds, your ARV is the ceiling.