12 C.F.R. § A to Part 628
Table A sets forth the loan-to-value limits specified in paragraph (2)(iv)(A) of the definition of high volatility commercial real estate exposure in § 628.2 .
Table A-Loan-to-Value Limits for High Volatility Commercial Real Estate Exposures
| Loan category | Loan-to-value limit (percent) |
| Raw Land | 65 |
| Land development | 75 |
| Construction: | |
| Commercial, multifamily,1 and other non-residential | 80 |
| 1- to 4-family residential | 85 |
| Improved property | 85 |
| Owner-occupied 1- to 4-family and home equity | 2 85 |
1 Multifamily construction includes condominiums and cooperatives.
2 If a loan is covered by private mortgage insurance, the loan-to-value (LTV) may exceed 85 percent to the extent that the loan amount in excess of 85 percent is covered by the insurance. If a loan is guaranteed by Federal, State, or other governmental agencies, the LTV limit is 97 percent.
The loan-to-value limits should be applied to the underlying property that collateralizes the loan. For loans that fund multiple phases of the same real estate project (e.g., a loan for both land development and construction of an office building), the appropriate loan-to-value limit is the limit applicable to the final phase of the project funded by the loan; however, loan disbursements should not exceed actual development or construction outlays. In situations where a loan is fully cross-collateralized by two or more properties or is secured by a collateral pool of two or more properties, the appropriate maximum loan amount under loan-to-value limits is the sum of the value of each property, less senior liens, multiplied by the appropriate loan-to-value limit for each property. To ensure that collateral margins remain within the limits, System institutions should redetermine conformity whenever collateral substitutions are made to the collateral pool.
12 C.F.R. §A to Part 628