Loan-to-Value (LTV) Calculator
LTV and combined LTV from your home value and loan balances, how far you are from the 80% PMI line, and the maximum LTV every loan program allows.
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Quick answer
Loan-to-value is the loan amount divided by the property value. A $320,000 loan on a $400,000 home is 80% LTV, which is the line that matters most: at or below it a conventional loan carries no private mortgage insurance and gets the best pricing tiers. Conventional purchases go up to 95% (97% for first-time buyer programs), FHA to 96.5%, VA and USDA to 100%. Cash-out refinances stop at 80%, and most HELOCs cap combined LTV at 80% to 85%.
Maximum LTV by loan program
Program caps are the ceiling; individual lenders often sit below them, and pricing gets worse in steps as LTV rises. The right-hand column shows what each cap means on a $400,000 home, and the last one tells you where your own loan stands against it.
| Program | Max LTV | Max loan on $400,000 | Note | Your 80.0% |
|---|---|---|---|---|
| Conventional purchase, first-time buyer (97 programs) | 97% | $388,000 | HomeReady, Home Possible, standard 97 | ✓ within cap |
| Conventional purchase, standard | 95% | $380,000 | PMI above 80% | ✓ within cap |
| Conventional cash-out refinance | 80% | $320,000 | Primary residence | ✓ within cap |
| FHA purchase | 96.5% | $386,000 | 3.5% down, MIP applies | ✓ within cap |
| FHA cash-out refinance | 80% | $320,000 | ✓ within cap | |
| VA purchase | 100% | $400,000 | No down payment, funding fee | ✓ within cap |
| USDA purchase | 100% | $400,000 | Eligible rural areas, income limits | ✓ within cap |
| Jumbo (typical) | 90% | $360,000 | Many lenders cap at 80% | ✓ within cap |
| Investment property purchase, conventional | 85% | $340,000 | 1 unit; 75% for 2 to 4 units | ✓ within cap |
| HELOC / home equity loan (CLTV, typical) | 85% | $340,000 | Some lenders 80%, a few 90% | ✓ within cap |
Caps from Fannie Mae and Freddie Mac eligibility matrices, HUD 4000.1 (FHA), VA and USDA program rules as of 2026, and typical lender policy for jumbo and home equity products. Confirm current limits with the lender; they change.
The formula and a worked example
CLTV = (first mortgage + second mortgage + HELOC balance) ÷ property value × 100
Principal to reach 80% = loan balance − 0.80 × value
Purchase. You buy a $450,000 house with $45,000 down. Loan $405,000, LTV 90%. Conventional is possible but PMI applies and the rate carries a 90% LTV adjustment. Putting down $90,000 instead takes LTV to 80%, removes PMI (roughly $150 to $300 a month on this loan) and improves the rate tier. The $45,000 difference pays for itself in 12 to 20 years from PMI alone, faster once the rate improvement is counted.
Existing mortgage. Three years in, the balance is $385,000 and a new appraisal says $500,000. LTV is 77%: you can request PMI cancellation now, two years before the amortization schedule would have reached 80% of the original price. Add a $40,000 HELOC and CLTV is 85%, which is the ceiling at most home equity lenders, so that is the most you could borrow against the house.
Why 80% is the number that matters
Three things change at 80% LTV on a conventional loan. Private mortgage insurance is required above it and not below it. Loan-level price adjustments, the grid Fannie Mae and Freddie Mac use to price risk, step up above it. And cash-out refinances are capped at it. The Homeowners Protection Act lets you ask for PMI cancellation at 80% of the original value and forces automatic cancellation at 78%, as long as payments are current; most servicers also accept a new appraisal after two years if the market has moved.
FHA loans do not follow the 80% rule. With less than 10% down, FHA mortgage insurance stays for the life of the loan, so FHA borrowers who reach 80% LTV usually refinance into a conventional loan to shed it. The refinance calculator shows whether the closing costs are worth it.
LTV, CLTV and HCLTV
LTV counts only the first mortgage. CLTV adds the drawn balance of any second mortgage or HELOC. HCLTV (home equity combined LTV) uses the full HELOC credit limit rather than the drawn balance, because you could draw it tomorrow. A lender reviewing a new first mortgage or a cash-out refinance looks at all three; a HELOC lender looks at CLTV. If you are applying for a HELOC, the number to watch is the combined figure in the results above.
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Frequently Asked Questions
How do I calculate loan-to-value?
Divide the loan amount by the property value and multiply by 100. A $320,000 mortgage on a $400,000 home is 80% LTV. For a purchase, lenders use the lower of the purchase price and the appraised value; for a refinance they use the new appraisal.
What is a good LTV ratio?
80% or lower. At 80% LTV a conventional loan needs no private mortgage insurance, and the best rates and the widest choice of programs start there. Anything above 95% is a high-LTV loan that only specific programs (conventional 97, FHA, VA, USDA) will take.
What is CLTV?
Combined loan-to-value adds every lien on the property: first mortgage plus a home equity loan or HELOC balance, divided by value. Lenders cap CLTV at 80% to 90% for most HELOCs and home equity loans, so CLTV, not LTV, decides how much you can borrow against your home.
At what LTV does PMI go away?
You can request cancellation when the balance reaches 80% of the original value, and the servicer must cancel automatically at 78% under the Homeowners Protection Act, provided payments are current. Many servicers also allow cancellation at 80% of a new appraised value after two years. FHA mortgage insurance works differently: with less than 10% down it lasts for the life of the loan unless you refinance.
What is the maximum LTV for a conventional loan?
97% for first-time buyers through Fannie Mae HomeReady, Freddie Mac Home Possible and the standard 97% options, 95% for most other conventional purchases, and 80% for a cash-out refinance on a primary residence. Second homes and investment properties have lower caps, typically 90% and 85% for purchases.
What LTV do FHA, VA and USDA loans allow?
FHA purchases go to 96.5% (3.5% down). VA and USDA purchases allow 100% LTV with no down payment. FHA cash-out refinances are capped at 80%; VA allows cash-out to 100% in theory, though most lenders stop at 90%.
Does LTV affect my interest rate?
Yes. Conventional pricing adds loan-level price adjustments as LTV rises above 60%, 70%, 75%, 80%, 85%, 90% and 95%, with credit score in the other dimension. Dropping from 85% to 80% LTV often cuts the rate by 0.125% to 0.25% and removes PMI, which is why an extra few thousand dollars of down payment can be worth more than it looks.
How do I lower my LTV?
Pay down the principal, make a larger down payment, or get a higher appraisal. The calculator shows the exact dollar amount of extra principal or value increase that takes you to 80%. Home price appreciation lowers LTV without any payment, which is why many borrowers reach the PMI line a year or two earlier than their amortization schedule suggests.
Sources: Fannie Mae Eligibility Matrix and Freddie Mac Single-Family Seller/Servicer Guide (LTV, CLTV and HCLTV limits by occupancy and loan purpose); HUD Handbook 4000.1 (FHA maximum LTV 96.5% purchase, 80% cash-out); VA Lenders Handbook; USDA Single Family Housing Guaranteed Loan Program; Homeowners Protection Act of 1998 (PMI cancellation at 80%, automatic termination at 78%). By Munir Afridi, October 2026.