Loan-to-Value Ratio (LTV) Definition
Loan-to-value ratio (LTV) is a metric that compares the size of loan to the value of an asset. While most HUD multifamily loans are constrained by LTV, HUD 223(a)(7) loans are not. Instead, HUD 223(a)(7) loans simply must not exceed 100% of eligible refinancing costs. These include the outstanding balance of the loan, eligible repair costs, third-party reports, and other eligible expenses.