HELOC CLTV: What Combined Loan-to-Value Means
CLTV — combined loan-to-value — is the ratio of all liens against your property to the property's accepted value. It is the primary measure HELOC programs use to determine how much equity you can access.
How CLTV Is Calculated
CLTV = (Total of all liens) ÷ (Accepted property value). All liens means your existing first mortgage plus any proposed HELOC (and any other existing liens). The accepted property value is what the HELOC program's AVM or appraisal determines — not necessarily what you think your home is worth.
Example
- Property value
- $500,000
- Existing mortgage
- $300,000
- Proposed HELOC
- $100,000
- Total liens
- $400,000
CLTV
80%
$400,000 ÷ $500,000 = 80% CLTV
What Determines Your Allowed CLTV
- —Program — each program has its own maximum CLTV by credit tier
- —Credit score — higher scores typically allow higher CLTV
- —Line amount — larger lines often have lower maximum CLTV
- —Occupancy — owner-occupied typically allows higher CLTV than investment
- —Lien position — first lien may allow higher CLTV than second lien in some programs
- —Property type — condos, 2-4 units, and rural properties may have lower limits
- —Accepted valuation — the AVM result, not your estimate
- —State — some states have specific CLTV limitations
Maximum CLTV is a ceiling, not a guarantee. Your actual available equity depends on all of these factors applied together — which is why comparing programs on advertised maximum CLTV alone is insufficient.
See What CLTV You Can Actually Access
The maximum CLTV on a program's website is a ceiling, not a guarantee. Morgan Hardy can help you compare what different programs will actually approve for your property, credit, and situation.
Shop My HELOC OptionsHELOC guidelines change frequently. This content is educational and is not a loan approval, commitment or guarantee.