If the get a score of 85 % or less after dividing total mortgages by current selling price of the home in that area, a private lender will approve your loan. (mortgagebrokerstore.com)
The LTV of a home is calculated by dividing the total debts against it by its most current selling price. (mortgagebrokerstore.com)
A home whose current selling price is $ 1,000,000 but has debts of $ 700,000 has 70 % LTV which reflects enough equity needed for a bad credit mortgage. (mortgagebrokerstore.com)