In one sentence
The loan amount as a percentage of total project cost, the primary sizing metric for construction and value-add loans.
The longer version
LTC measures leverage against what a project actually costs to build or reposition, complementing LTV which measures against value. Construction lenders lean on LTC because cost is more concrete than projected value.
The sponsor's equity is the flip side of LTC: an 80% LTC loan requires 20% equity, and lenders care where that equity sits in the capital stack.
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