Owner/occupier borrower buying single family home or condo.

Note that the ITV refers to the "as is" value, not what the property could be worth if fixed up. Always insist on an appraisal by a licensed appraiser, preferably of your choosing. The property could be being bought for less than the appraised value.

ITV means Investment to Value. LTV means Loan to Value.

Example: A house is worth $100,000.

The mortgage is for $80,000. The LTV is 80%.

You buy this mortgage for $70,000. Your ITV is 70%.

We recommend that the buyer always has at least 5% of their own cash in the deal.

You may just want to buy part of the mortgage if you are not comfortable with the investment risks.

Remember, the above are guides only. Never let anyone tell you how to invest your money. As a practical matter, if someone has put up 10% of their own money to buy your property it is very unlikely the loan will default. There are exceptions. In Texas some years ago, homes fell in value by 40% and thousands of home owners gave their homes to the bank or were foreclosed.

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Non owner occupied real estate
Yield to aim for when buying mortgage secured on non owner occupied residential real estate

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