CLTV (Combined LTV)
Total of all liens on the property (first mortgage + any HELOCs or second mortgages) divided by property value. A first mortgage of $300,000 plus a $50,000 HELOC on a $400,000 home is 87.5% CLTV. Lenders use CLTV to assess total exposure, not just the loan being applied for.
How does this affect your loan? Estimate self-employed qualifying income with the DTI calculator, or read the self-employed mortgage guide.
Related terms
- Pre-approval — A conditional commitment from a lender based on a full review of your income documents, assets, debt obligatio…
- Pre-qualification — A preliminary, informal estimate of how much you might borrow, usually based on self-reported information with…
- Underwriting — The lender’s detailed verification and risk assessment of your application. An underwriter reviews income, ass…
- Compensating factors — Strengths in your application that offset a weakness elsewhere. Common examples: large reserves offsetting a h…
- Overlays — Lender-specific requirements stricter than the minimum guidelines set by Fannie Mae, FHA, or the non-QM progra…
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Sources
Educational definition only — not financial, legal, or tax advice. Programs and limits change; verify current terms with a licensed professional.