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ChurchLend
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LTV calculator

How much of your property are you borrowing against?

Loan-to-Value (LTV) is the second underwriting check after DSCR. It tells the lender how much equity backs the loan, and how much room they have if foreclosure ever becomes necessary.

The property and debt

$5,000,000
Use market appraisal, not tax-assessed value or insured replacement cost.
$0
Current mortgage balance secured by the property. $0 for a free-and-clear building.
$3,000,000
The additional loan you're considering on top of any existing debt.

Your loan-to-value

60.0%
Conservative

Best rates available. Lenders compete for this profile.

Equity $2.0M
Proposed $3.0M
Total debt
$3,000,000
Equity cushion
$2,000,000

Estimate only. Not a loan offer or commitment. Lenders order their own appraisal and apply their own LTV caps and DSCR thresholds.

See what you'd actually qualify for

How the lender sees your property

The full appraised value with the debt layers stacked from the bottom and the equity cushion on top. The gold cushion is what the lender has left if foreclosure ever becomes necessary.

Equity $2.0M
Proposed $3.0M
Equity cushion
What the lender has left if foreclosure ever happens.
$2,000,000
40%
Proposed new loan
The loan you're considering on top of existing debt.
$3,000,000
60%
Existing debt
Current mortgage balance secured by this property.
$0
0%

What LTV means to a church lender

Loan-to-Value is the second underwriting check after DSCR. DSCR asks whether the cash flow can comfortably cover the payment; LTV asks whether the property can comfortably cover the loan if the cash flow ever fails. Both have to pass.

Church property is a thin secondary market: the buyer pool for a repossessed sanctuary is small and often denominationally constrained. Lenders price this risk by holding LTV tighter than they would on commercial office or industrial collateral. Most cap at 80%; the strongest borrowers with denomination backing occasionally stretch to 85-90%.

The formula
LTV = Total Debt (existing + proposed) ÷ Appraised Property Value
Always use the appraised market value, not tax-assessed value or insured replacement cost. Lenders order their own appraisal during underwriting.

The four LTV bands

≤ 70%
Conservative
Best rates available
70 to 80%
Standard
Most lenders accept
80 to 90%
Aggressive
Needs strong DSCR offset
> 90%
Excessive
Most lenders decline

Frequently asked questions

What LTV do church lenders accept?
Most church lenders cap LTV at 80% for standard underwriting. Denomination extension funds occasionally stretch to 85-90% for member churches with strong DSCR. Above 90%, expect a decline or a request for additional collateral.
What property value should I use?
Use the appraised market value, not the assessed (tax) value or insured replacement cost. Lenders order their own appraisal during underwriting; pre-appraisal estimates from commercial brokers are usually within 10% of what the lender will find.
Does LTV include other church properties?
It depends on collateral structure. If you're cross-collateralizing multiple parcels, the lender adds the values and the debts together. If only the construction or purchase property secures the loan, LTV is just against that property's value.
Why does LTV matter more for churches?
Church property is a thin secondary market. A repossessed sanctuary is hard to resell: the buyer pool is small and often denominationally constrained. Lower LTV means the lender takes less write-down risk if foreclosure becomes necessary, so they price the loan accordingly.

LTV is 1 of 7 factors

See your full readiness score across every underwriting factor lenders weigh.
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