What is the maximum Loan to Value (LTV) ratio EDC will loan?
The maximum Loan-to-Value (LTV) that EDC will loan is 70% LTV and it is based on the after-improved value (ARV) of the property. For example, if a property will be worth $150,000 after it has been repaired, the maximum loan EDC will provide is $105,000. This amount includes the purchase price, construction amount, closing costs, origination points, and the interest reserve for the term of the loan. If the cost exceeds the 70% LTV that EDC loans, the investor can fund the difference between the 70% and the amount needed in the form of a down payment at closing. For loan amounts above $375,000 and for multi-family properties, the maximum loan to value is 65%LTV.
