Bridge & Construction

Loan-to-After-Repair-Value (LTARV)

The total committed bridge loan (acquisition + rehab holdback) divided by the appraiser’s projected After Repair Value (ARV).

Underwriting Formula / Rule

LTARV = Total Loan Commitment ÷ Appraised Subject-To After Repair Value (ARV).

Detailed Credit-Committee Impact & Thresholds

LTARV caps total leverage relative to the completed subject-to value of the renovated property, ensuring sufficient equity cushion for a clean sale or DSCR refinance takeout.

2026 Wholesale Benchmark: 70%–75% Max LTARV across institutional RTL shelves.

Related Underwriting Terms

Debt Service Coverage Ratio (DSCR)Form 1007 Single-Family Comparable Rent Schedule Form 1025 Small Residential Income Property Appraisal Report 5-4-3-2-1 Step-Down Prepayment Penalty 3-2-1 Step-Down Prepayment Penalty Yield Maintenance Prepayment Provision