Loan-to-value ratio from the right numerator and value base

Short answer: LTV equals loan amount divided by the required property value, multiplied by 100. To find the maximum loan, multiply value by the decimal LTV. To find value, divide the loan by the decimal LTV. In a simple one-loan purchase using price as value, down-payment percentage is 100% minus LTV. In actual underwriting, the value base and included loan amounts follow program rules. For many Fannie Mae purchase loans, the value base is the lower of sales price or current appraised value. LTV generally addresses the first mortgage, CLTV adds applicable subordinate debt, and HCLTV can use the full home-equity line limit. Do not import a loan-program cutoff unless the question states it.

This is exam math, not mortgage approval guidance. Current underwriting can apply product-specific value definitions, maximum ratios, occupancy rules, mortgage-insurance treatment, subordinate-financing rules, rounding conventions, appraisal requirements, and automated findings. Approval can also turn on credit, income, assets, reserves, property eligibility, documentation, and the borrower's requested terms, none of which a correct LTV result resolves by itself or guarantees approval. Fannie Mae examples help show why denominator selection matters, but they do not govern every loan. Special rules can apply to construction, renovation, shared-equity, manufactured-housing, and other transactions. Use the ratio, loan category, property value, and rounding instruction stated in the problem. Sources were checked through August 1, 2026.

1. Underline the requested result: LTV, maximum loan, required value, down payment, CLTV, or HCLTV.
2. Label the debt numerator as original first loan, current first balance, total liens, or full credit-line exposure.
3. Label the denominator as stated value, current value, sales price, appraised value, or the lower amount required by the problem.
4. Write the equation in words before entering numbers: loan divided by value, loan equals value times LTV, or value equals loan divided by LTV.
5. Convert a given percentage to a decimal when multiplying or dividing to recover a missing amount.
6. Calculate with full precision and follow the problem's final rounding instruction.
7. Check direction: more debt raises LTV, more value lowers LTV, and a larger down payment ordinarily lowers LTV.
8. State the result without inventing an approval threshold, mortgage-insurance rule, or loan-program conclusion.

These questions are original study items aligned to the published outline. They are not copied, recalled, or predicted PSI questions.

Do not count recognition as mastery. Close the notes and explain the rule, apply it to a new fact pattern, and identify why each distractor fails.

• Study LTV with equity, PITI, and points
• Review loan math and underwriting
• Calculate buyer funds at closing
• Practice randomized LTV math

• PSI Illinois Candidate Information Booklet dated June 24, 2026
• Consumer Financial Protection Bureau, current loan-to-value ratio explanation
• Fannie Mae Selling Guide B2-1.2-01, current LTV, CLTV, and HCLTV calculations
• Fannie Mae Selling Guide B2-1.3-01, current purchase transaction requirements
• Consumer Financial Protection Bureau, Regulation C Section 1003.4 combined LTV reporting rule
• Fannie Mae Selling Guide B7-1-01, current mortgage-insurance value rules

The current official outline controls the tested scope. Statutes, regulations, and official agency materials control when a general study rule and a jurisdiction-specific rule differ.