> For the complete documentation index, see [llms.txt](https://underwriting.homium.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://underwriting.homium.io/eligibility/mortgage-eligibility/calculation-of-the-cltv-ratio.md).

# Calculation of the CLTV Ratio

All Homium mortgage loans must be subject to first lien financing, the lender must calculate the LTV ratio and the CLTV ratio. 

The CLTV ratio is determined by dividing the sum of the items listed below by the lesser of the sales price or the appraised value of the property.

* the most current statement balance of the first mortgage
* the amount of the new first lien
* the amount of the Homium mortgage loan

In no case may the final CLTV exceed 105% of the appraised value of the property. (see program specifics for details on CLTV limits)


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