Methodology authored by Zach Wade, Wade Intel — operator-led lender tech methodology firm. Definitions validated against production borrower-validation runs with working bridge lenders. · Last reviewed 2026-07-10

What is Loan-to-Value (LTV)?

The ratio of a loan amount to the appraised value of the property securing it, expressed as a percentage. A $600K loan on a property worth $800K has a 75% LTV. Bridge lenders typically cap LTV at 65-80%.

Why it matters to bridge lenders

LTV determines your downside protection if the borrower defaults. But LTV alone doesn’t protect you — a borrower with a history of defaults, suspended entities, or fraudulent track records can create losses even at conservative LTVs through delayed foreclosure, property damage, or legal complications.

Related: Bridge Loan, Hard Money Loan, Foreclosure