Loan-to-cost (LTC) ratio compares the loan amount to the total cost of a project, including acquisition price, renovation budget, and soft costs. Unlike LTV, which uses appraised value, LTC is based on actual dollars invested. A lender offering 85% LTC on a $200,000 total project cost would provide $170,000 in financing. LTC is the standard metric for fix-and-flip loans, construction loans, and value-add projects where the current appraised value may not reflect the project's true scope. Investors should understand both LTV and LTC as lenders often use the lower of the two.