Loan-to-After-Repair-Value (LTARV)
Bottom Line Up Front (BLUF): LTARV caps total leverage relative to the completed subject-to value of the renovated property, ensuring sufficient equity cushion for a clean sale or DSCR refinance takeout.
Underwriting Formula / Rule
LTARV = Total Loan Commitment ÷ Appraised Subject-To After Repair Value (ARV).
Wholesale Shelf Benchmark
70%–75% Max LTARV across institutional RTL shelves.
Frequently Asked Underwriting Questions
How does the appraiser determine ARV?
The appraiser reviews your line-item Scope of Work (SOW) and compares the finished specs to recently sold renovated comps.
Arranged by Loan Daddy LLC (NMLS #2827624 · (480) 485-1229 · quotes@loandaddy.ai). Business-purpose investment properties only.