---
policyId: LOS-LTV-002
title: Approved Loan-to-Value Exception
policyFamily: Loan-to-Value
position: Approved Exception
approvalStatus: Approved
owner: Credit Risk
marketScope: National
lastReviewed: 2026-06-18
nextReview: 2026-12-18
usageCount: 17
tags: [ltv, collateral, exception, approved]
---

# Approved Loan-to-Value Exception

The loan-to-value limit may be raised to eighty percent of appraised value where the borrower funds a twelve-month interest reserve at closing and provides an additional guaranty from a creditworthy affiliate or principal. The reserve is held in a Bank-controlled account and released only after four consecutive quarters of covenant compliance.

## Use when

The borrower cannot meet the seventy-five percent standard, the shortfall is no more than five points, and the borrower has an established payment history with the Bank.

## Approval note

The Chief Credit Officer must approve this exception before a commitment letter is issued. Loan-to-value above eighty percent is outside policy and outside this exception.