Tap to get financing
CMBS Loans
Property types
Mobile Home Park CMBS LoansHospital CMBS LoansIndustrial CMBS LoansHotel CMBS LoansRetail CMBS LoansSelf-Storage CMBS LoansMixed-Use CMBS LoansOffice CMBS LoansApartment CMBS LoansCMBS Property Types
Loan basics Loan terms
Resources
BlogCommercial InsuranceLoan Documents
For Brokers
About
TeamLeadership
(561) 556-2121
Get financing →
Newly Published
Jul 3 at CMBS Loans
Business Interruption Insurance for CMBS-Financed Properties
Jul 3 at CMBS Loans
Liability Insurance for CMBS-Financed Commercial Properties
Jul 1 at CMBS Loans
Property Insurance for CMBS-Backed Commercial Real Estate
Explore the Janover Network
May 8 at HUD Loans
The 2025 Developer's Guide to HUD Lender Matching
Apr 22 at Janover Inc. Investor Relations
Janover Inc. Announces Corporate Name Change to DeFi Development Corporation
Apr 16 at Janover Inc. Investor Relations
Janover Inc. to Host X Spaces Conversation on NAV Premiums
Was This Article Helpful?
CMBS Loan Secrets
1 min read

Loan-to-Value Ratio (LTV) in Relation to CMBS Loans

Loan-to-value ratio, or LTV, is one of the most important metrics that lenders use to determine whether a borrower can qualify for CMBS loan. LTV can be determined by dividing the amount of the loan by the assessed value of the property.

Start Your Application and Unlock the Power of Choice Experience expert guidance, competitive options, and unparalleled industry expertise.
Click Here to Get Quotes →
$5.6M offered by a Bank$1.2M offered by a Bank$2M offered by an Agency$1.4M offered by a Credit UnionClick Here to Get Quotes!

LTV Ratios and CMBS Financing

Loan-to-value ratio, or LTV, is one of the most important metrics that lenders use to determine whether a borrower can qualify for a CMBS loan. LTV can be determined by dividing the amount of the loan by the assessed value of the property. For example, if a borrower wants to take out a loan for $2.5 million, and the property they’re buying is worth $3 million, the potential loan would have an LTV of:

$2.5 million/$3 million = 0.83, or 83% LTV

Since most CMBS loans permit a maximum LTV of 75%, the borrower in the example above would probably not qualify for CMBS financing.

Related Questions

What is the maximum loan-to-value ratio for a CMBS loan?

The maximum loan-to-value ratio for a CMBS loan is typically 75%.

This is according to cmbs.loans/blog/loan-to-value-ltv and www.multifamily.loans/multifamily-cmbs-loans.

What factors influence the loan-to-value ratio for a CMBS loan?

The loan-to-value (LTV) ratio for a CMBS loan is determined by dividing the loan amount by the appraised value of the commercial property. The average maximum LTV for a CMBS loan is 75%, but this can vary based on other risk factors. Highly desirable properties may be permitted LTVs up to 80%, while riskier properties may only be allowed 70%. Higher LTVs typically lead to higher spreads, as they increase the risk for lenders.

Source: www.multifamily.loans/apartment-finance-blog/what-are-the-interest-rates-for-cmbs-loans-in-2019

Source: www.multifamily.loans/multifamily-cmbs-loans

Source: cmbs.loans/blog/what-is-a-cmbs-loan

How does the loan-to-value ratio affect the interest rate of a CMBS loan?

The loan-to-value ratio (LTV) is one of the most important metrics that lenders use to determine whether a borrower can qualify for a CMBS loan. Generally, the higher the LTV, the higher the interest rate. This is because lenders view higher LTV loans as riskier and therefore charge a higher rate to compensate for the risk. According to CMBS.loans, the actual interest rate on a CMBS loan is generally based on current U.S. Treasury swap rates, which are often lower than traditional commercial property mortgages.

What are the advantages of a CMBS loan with a high loan-to-value ratio?

CMBS loans offer several advantages for borrowers with a high loan-to-value ratio. First, these loans are available to a wide swath of borrowers, including those that might be excluded from traditional lenders due to poor credit, previous bankruptcies, or strict collateral/net worth requirements. Plus, CMBS loans are non-recourse, which means that even if a borrower defaults on their loan, the lender can’t go after their personal property in order to repay the debt. In addition, CMBS loans offer relatively high leverage, at up to 75% for most property types (and even 80% in some scenarios).

CMBS loans also offer attractive fixed rates for long term loans, and can go up to 75% LTV. They also provide cash out refinancing, and loans are fully assumable. Finally, CMBS loans can be combined with mezzanine debt or preferred equity in many scenarios.

What are the risks associated with a CMBS loan with a high loan-to-value ratio?

CMBS loans with high loan-to-value ratios can be riskier for borrowers, as they may be more likely to default on their loan if the value of the property decreases. Additionally, CMBS loans with high LTVs may have higher interest rates, as lenders may view them as riskier investments. Finally, CMBS loans with high LTVs may also have more stringent requirements for borrowers, such as higher net worth requirements or more stringent collateral requirements.

Source: cmbs.loans/blog/loan-to-value-ltv

Source: www.multifamily.loans/apartment-finance-blog/the-pros-and-cons-cmbs-of-cmbs-loans-a-guide

Source: cmbs.loans/blog/cmbs-loans-pros-and-cons

In this article:
  1. LTV Ratios and CMBS Financing
  2. Related Questions
  3. Get Financing
Categories
  • CMBS Loans
  • Conduit Loans
Tags
  • CMBS LTV
  • Conduit Loan LTV
  • CMBS Loans
  • CMBS Financing
  • Conduit Loans

Getting commercial property financing should be easy.⁠ Now it is.

Click below for a free, no obligation quote and to learn more about your loan options.

Get financing →

Janover: Your Partner in Growth

At Janover, we offer a wide range of services tailored to your unique needs. From commercial property loans and LP management to business loans and services for lenders, we're here to help you succeed.

Learn more about Janover →
Commercial Property Loans

Get the best CRE financing on the market.

Explore Financing Options →
LP Management

Syndicate deals on autopilot with Janover Connect.

Discover LP Management →
Business Loans

Match with the right kind of loan, in record time.

Find Business Loans →
For Lenders

Supercharge your loan pipeline. Unlock more deals.

Boost Your Loan Pipeline →
CMBS Loans

CMBS Loans is a Janover company. Please visit some of our family of sites at: Multifamily Loans, Commercial Real Estate Loans, SBA7a Loans, HUD Loans, Janover Insurance, Janover Pro, Janover Connect, and Janover Engage.

Janover Tech Inc.

6401 Congress Ave
Ste 250
Boca Raton FL 33487
(561) 556-2121 
hello@cmbs.loans

Property types

Mobile Home Park CMBS Loans
Hospital CMBS Loans
Industrial CMBS Loans
Hotel CMBS Loans
Retail CMBS Loans
Commercial Mortgage Calculator
For Commercial Mortgage Brokers

Self-Storage CMBS Loans
Mixed-Use CMBS Loans
Office CMBS Loans
Apartment CMBS Loans
CMBS Property Types
Commercial Loan Rates
For Commercial Mortgage Brokers

Site Information

Privacy Policy
Terms of Use


For Commercial Mortgage Brokers

This website is owned by a company that offers business advice, information and other services related to multifamily, commercial real estate, and business financing. We have no affiliation with any government agency and are not a lender. We are a technology company that uses software and experience to bring lenders and borrowers together. By using this website, you agree to our use of cookies, our Terms of Use and our Privacy Policy. We use cookies to provide you with a great experience and to help our website run effectively.

Freddie Mac® and Optigo® are registered trademarks of Freddie Mac. Fannie Mae® is a registered trademark of Fannie Mae. We are not affiliated with the Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA), Freddie Mac or Fannie Mae.

This website utilizes artificial intelligence technologies to auto-generate responses, which have limitations in accuracy and appropriateness. Users should not rely upon AI-generated content for definitive advice and instead should confirm facts or consult professionals regarding any personal, legal, financial or other matters. The website owner is not responsible for damages allegedly arising from use of this website's AI.

Copyright © 2025 Janover Tech Inc. All rights reserved.

+

Fill out the form below and get the pricing and terms banks can't compete with.