Nov 22, 2018

What is Loan-to-Cost Ratio (LTC)?

Loan-to-cost ratio, or LTC, compares a project’s financing to the cost of construction. Along with loan-to-value ratio, or LTV, LTC is one of the most important metrics that lenders look at when deciding whether to approve a HUD multifamily construction loan, like the HUD 221(d)(4) loan.