The loan amount as a percentage of total project cost (purchase plus construction/rehab).
Where LTV compares the loan to value, LTC compares it to what the project actually costs — the number construction and fix-and-flip lenders care about.
Formula: LTC = Loan ÷ (Purchase + Build Costs) × 100
Example: A $400,000 loan on a $500,000 total project is 80% LTC.
FAQ
What is LTC in simple terms?
Where LTV compares the loan to value, LTC compares it to what the project actually costs — the number construction and fix-and-flip lenders care about.
How is it calculated?
LTC = Loan ÷ (Purchase + Build Costs) × 100. Example: A $400,000 loan on a $500,000 total project is 80% LTC.