LTC

LTC = Loan Amount / Total Project Cost. While LTV measures the loan against completed value, LTC measures it against what you paid and invested. On a $140,000 purchase with $35,000 rehab, total cost is $175,000. A $131,250 loan represents 75% LTC. Construction and bridge lenders often use LTC rather than LTV because completed value is speculative during the improvement phase. In seller-financed value-add deals, LTC analysis helps confirm you are not over-leveraging relative to invested capital before the forced appreciation is realized.