This topic contains information on CLTV ratios, including:
For first mortgage loans that are subject to subordinate financing, the lender must calculate the LTV ratio and the CLTV ratio. For first mortgage loans that are subject to a HELOC, see B2-1.2-03, Home Equity Combined Loan-to-Value (HCLTV) Ratios. For all other subordinate liens, see B2-1.2-04, Subordinate Financing for additional information.
The CLTV ratio is determined by dividing the sum of the items listed below by the lesser of the sales price or the appraised value of the property.
the original loan amount of the first mortgage,
the drawn portion (outstanding principal balance) of a HELOC, and
the unpaid principal balance of all closed-end subordinate financing. (With a closed-end loan, a borrower draws down all funds on day one and may not make any payment plan changes or access any paid-down principal once the loan is closed.)
Refer to the Eligibility Matrix for allowable CLTV ratios.