Loan-to-Cost Ratio in Relation to the HUD 232 Loan Program
Loan-to-cost ratio, or LTC, is a metric comparing the amount of a project’s financing to its construction costs. For HUD 232 construction loans, loan-to-cost ratio is one of the major measures of leverage. In contrast, HUD 232 acquisitions and refinance loans are more often assessed based on their loan-to-value ratio, or LTV.
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