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The borrowed funds-to-worth (LTV) ratio ‘s the ratio amongst the amazing dominating loan amount and you can the brand new appraised worth of this new collateral

To help you qualify for the latest secure harbor, good mezzanine loan have to fulfill the following criteria:

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LTV percentages are generally conveyed due to the fact a percentage of your own collateral’s appraised worthy of. Such as for example, if the equity has actually an enthusiastic appraised property value $100 billion therefore the lender’s maximum let LTV proportion is actually 55%, then your loan amount will most likely not exceed $55 mil. (more…)

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