what is a good maximum loan to value ratio 
a loan to value ratio measures how much of an asset is financed compared to the overall value of the asset for example if you take out a 400 000 mortgage to purchase a 500 000 home the loan to value ratio would be 80 what constitutes a good maximum loan to value ratio depends on the type of loan some homebuying programs allow buyers to put down as little as 3 meaning the loan to value ratio would be 97 but that can be risky for the borrower if the value of the home decreases due to market conditions or other factors the bottom line