4203.2: Calculating LTV, TLTV and HTLTV ratios (07/11/16)

Owned by Marsha Freeman
Last updated: Nov 19, 2018
1 min read

© Freddie Mac Single-Family Seller Servicer Guide

Loan Product AdvisorSM calculates the loan-to-value (LTV) ratio, total LTV (TLTV) ratio, and Home Equity Line of Credit (HELOC) TLTV (HTLTV) ratio based on the data submitted by the Seller.

For Non-Loan Product Advisor Mortgages:

  • The LTV ratio is obtained by dividing the First Lien Mortgage amount by value, as defined in Section 4203.1
  • The TLTV ratio is obtained by dividing the sum of the First Lien Mortgage amount and the disbursed amount of the HELOC and any other secondary financing by value, as defined in Section 4203.1
  • The HTLTV ratio is obtained by dividing the sum of the First Lien Mortgage amount and the total HELOC credit line limit and any other secondary financing by value, as defined in Section 4203.1


To determine if a Mortgage meets LTV, TLTV or HTLTV ratio requirements, round each ratio up to the next whole number.

Freddie Mac will calculate the LTV ratio for each Mortgage it purchases based on data delivered by the Seller. Freddie Mac will calculate the LTV ratio to two decimal places and round the result of that calculation up to the next whole number. For example, 94.01% will be rounded up to 95%.