If the lender specifies a loan-to-value ratio of 70%, then the buyer must make a 70% down payment on the purchase of a home.

Question

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A loan-to-value ratio of 70% means that the lender will only finance 70% of the purchase price of the home, leaving the buyer responsible for the remaining 30%. This does not necessarily mean that the buyer must make a 70% down payment, as they may be able to secure financing from other sources to cover some of the remaining 30%.

If the Lender Specifies a Loan-To-Value Ratio of 70%, Then