REAL ESTATE GLOSSARY
LTC
Loan-to-Cost Ratio
Loan amount divided by total project cost.
What does LTC mean?
Loan amount divided by total project cost. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
LTC in context
A $7 million construction loan on a $10 million project equals 70% LTC.
Why it matters in financing
LTC can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related real estate terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.