The maximum loan-to-value ratio (LTV) is based on multiple risk factors such as, location of the property, type of property, credit history, ability to make monthly payment as well as market environment. Under normal circumstances, private lenders would entertain LTV as high as 75% to 80%. Very few lenders go beyond 80%, but rates and fees will be adjusted accordingly to reflect the risk associated with the transaction. Location and type of property are definitely the most important factors that private lenders will consider when assessing the deal.
