# LTC vs LTV Explained

> LTC vs LTV — what's the difference? Learn how loan-to-cost and loan-to-value are used in real estate lending for fix and flip, construction, and CRE loans.

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## Quick answer

LTV (loan-to-value) measures the loan against current property value. LTC (loan-to-cost) measures the loan against total project cost including acquisition and construction.

## Loan parameters

- Loan size: $500,000 – $10,000,000
- Loan type: Educational

## Eligible assets

- Any real estate investment

## Underwriting guidelines

- LTV = Loan ÷ Property Value
- LTC = Loan ÷ Total Project Cost

## FAQs

**Q: When is LTC used instead of LTV?**

LTC is used in construction and fix-and-flip lending where the property has not yet reached its final value. LTV is used for stabilized or existing properties.

## Related

- [Fix and Flip Loan LTC](https://riversidepark.capital/fix-and-flip-loan-ltc)
- [CRE Loan LTV Guidelines](https://riversidepark.capital/cre-loan-ltv-guidelines)
- [DSCR Loan Max LTV](https://riversidepark.capital/dscr-loan-max-ltv)
- [ARV Explained](https://riversidepark.capital/arv-explained-real-estate)

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Source: Riverside Park Capital — https://riversidepark.capital/ltc-vs-ltv-explained