Question

question 20
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an investor uses seller (vendor) finance for 20% of the price, a bank loan for 60%, and equity of 20%. what is the ltv?

a. 60%

b. 70%

c. 20%

d. 80%
clear my choice

Explanation:

Step1: Define LTV

LTV (Loan - to - Value) ratio is the percentage of the property value that is financed by loans.

Step2: Calculate LTV

The investor uses seller finance (20%) and a bank loan (60%). The total loan percentage is the sum of these two. So, $LTV=20\% + 60\%$.
$LTV = 80\%$

Answer:

D. 80%