---
policyId: LOS-LTV-001
title: Standard Loan-to-Value Limit
policyFamily: Loan-to-Value
position: Standard
approvalStatus: Approved
owner: Credit Risk
marketScope: National
lastReviewed: 2026-06-18
nextReview: 2026-12-18
usageCount: 43
tags: [ltv, collateral, standard, approved]
---

# Standard Loan-to-Value Limit

The outstanding principal of a loan secured by owner-occupied commercial real estate will not exceed seventy-five percent of the appraised value of the collateral. Appraised value means the as-is market value stated in an appraisal ordered by the Bank from an approved appraiser. Furniture, fixtures, equipment, inventory, and borrower-supplied valuations are excluded from appraised value.

## Use when

- The loan is secured by a first-priority mortgage on owner-occupied commercial real estate.
- The appraisal is current (within twelve months) and was ordered by the Bank.

## Escalate when

Reject any collateral definition that adds personal property to appraised value, relies on a broker opinion or the borrower's stated value, or restates the ratio outside the financial covenant section, without Credit Risk approval.