Florida LTV and down payment calculator, 2026 exam math.
Calculate loan-to-value, loan amount, down payment, down payment percent, and low-appraisal cash gaps for Florida sales associate mortgage math.
The LTV formula is loan amount divided by value. To find the loan, multiply value by the LTV decimal. To find down payment, subtract loan amount from purchase price. If the question gives a lower appraisal, pause before using the contract price.
Loan-to-value is the loan amount divided by the value used in the question.
If the LTV is given, convert it to a decimal and multiply by the value.
The buyer's down payment is the purchase price minus the loan amount.
If price and appraisal differ, the exam may expect the lower value as the LTV base.
Loan divided by value gives LTV. Value divided by loan gives the wrong answer.
Residential Mortgages includes mortgage loan types, qualifying the buyer, and math-finance.
Real estate related computations and closing of transactions can also test formula setup.
The sales associate exam is closed-book, multiple choice, and scheduled through Pearson VUE after DBPR eligibility.
LTV should be a fast arithmetic problem so you can save time for law, brokerage, and closing questions.
Four steps before you touch the answer choices.
LTV math gets easier when you decide the final ask and the value basis before calculating.
Identify the final ask
Decide whether the question asks for LTV, maximum loan, purchase price, down payment dollars, or down payment percent.
Choose the value basis
Use the named base if the stem says purchase price or appraised value. If the stem tests a low-appraisal setup, use the lower value for the LTV base.
Convert the percent
Turn 80 percent into 0.80 before multiplying or dividing. Keep the loan amount on top when calculating LTV.
Check the cash gap
After finding the loan, subtract it from the purchase price to get buyer cash needed. A low appraisal can make the cash needed larger than the simple 20 percent shortcut.
Find the loan, LTV, and down payment without flipping the fraction.
LTV questions test which value goes under the loan amount.
Default to the lower value when the stem tests LTV. Override only when it explicitly says purchase price or appraised value.
For exam-style LTV, use the value the question tells you. If both price and appraisal are given, watch for the lesser-of-value setup.
LTV is loan amount divided by value. Do not flip the fraction.
Down payment is purchase price minus loan amount. The percent is only a shortcut when price and value match.
If a question gives both purchase price and appraised value, pause before using the higher number. LTV is only clean when the value basis is clean.
Email the cheat sheet and this calculation.
Get the formula, trap reminders, and your current breakdown in one printable study note.
Name the value before you calculate.
Most LTV misses come from using the wrong base or answering the wrong final ask. Decide the base first, then choose the operation.
Did the problem give purchase price, appraisal, or both?
If only one value is given, use that value. If both are given, check whether the problem is testing the lesser-of-value mortgage rule.
Are you solving for LTV, loan amount, or price?
LTV uses division. Loan amount uses multiplication. Price or value from a loan and LTV uses division by the LTV decimal.
Does the question ask for down payment dollars or percent?
Down payment dollars are purchase price minus loan amount. Down payment percent is down payment divided by purchase price.
Did a low appraisal create an extra cash gap?
A low appraisal can make the buyer's cash requirement larger than the simple 100 percent minus LTV shortcut.
Four LTV patterns Florida candidates should know cold.
These examples cover direct LTV, loan amount, down payment, and the low-appraisal setup that turns a simple formula into a trap.
$320,000 loan on a $400,000 purchase
The loan goes on top of the fraction.
$400,000 value at 80 percent LTV
Convert 80 percent to 0.80 before multiplying.
$400,000 purchase price and $320,000 loan
The LTV answer and the down payment answer are not the same thing.
$400,000 price, $390,000 appraisal, 80 percent LTV
A lower appraisal changes the loan amount and increases cash needed.
Four LTV and down payment questions to solve first.
These original exam-style questions test the direct formula, reverse setup, and low-appraisal cash gap without using copied exam items.
A buyer borrows $320,000 to buy a property with a $400,000 value basis. What is the LTV?
$320,000 divided by $400,000 equals 0.80, so the loan-to-value ratio is 80 percent.
A lender will make an 80 percent LTV loan on a $390,000 appraised value. What is the maximum loan?
$390,000 times 0.80 equals $312,000. Convert the percent before multiplying.
A buyer pays $400,000, the property appraises for $390,000, and the lender allows 80 percent LTV on the lower value. How much cash is needed before other closing costs?
The maximum loan is $390,000 times 0.80, or $312,000. $400,000 minus $312,000 equals $88,000.
A loan is $270,000 at 75 percent LTV. What value basis does the problem imply?
$270,000 divided by 0.75 equals $360,000. Reverse LTV divides by the decimal.
LTV mistakes that make easy lending math feel slippery.
The formula is short. The careful part is choosing the correct value and the correct final answer type.
Dividing value by loan amount
LTV is loan divided by value. If you flip the fraction, the answer may look like a percent but it will not match the lending concept.
Using purchase price when appraisal is lower
If the problem gives both price and appraisal, read carefully. The exam often wants the lower value for the loan base.
Using 100 percent minus LTV too quickly
That shortcut works only when purchase price and value basis match. A low appraisal can change the cash needed at closing.
Multiplying by 80 instead of 0.80
Every LTV percent has to become a decimal inside the formula. This is an easy mistake under time pressure.
Answering loan amount when it asks for down payment
Many answer choices are numbers from the same scenario. Re-read the last sentence before choosing.
What to study next if lending math is a weak spot.
LTV connects to financing, appraisal, and broader formula recognition. Pair it with the full math set before test day.
What is official, and what is exam coaching.
DBPR controls the exam outline and Pearson VUE administers the testing experience. The formulas and traps here are Pass Florida teaching examples built from arithmetic and current Florida exam scope.
The formulas are arithmetic teaching tools, not a DBPR-published calculator.
Florida exam scope was checked against the current DBPR Sales Associate Candidate Information Booklet and DBPR Examination Information page.
Mortgage disclosure context was checked against CFPB Loan Estimate and private mortgage insurance resources.
The lesser-of-value framing is exam-prep pedagogy for common low-appraisal scenarios. If a question names purchase price or appraised value as the base, use the named base.
Frequently asked questions about LTV.
Short answers for the searches candidates usually make after missing one mortgage math problem.
How do you calculate LTV on the Florida real estate exam?+
Divide the loan amount by the value used in the question, then convert the decimal to a percent. If the loan is $320,000 and the value is $400,000, the LTV is $320,000 divided by $400,000, or 80 percent.
How do you calculate down payment from LTV?+
First multiply the value by the LTV to get the loan amount. Then subtract the loan amount from the purchase price to get the down payment.
What is the lesser-of-value trap?+
If a question gives both purchase price and appraised value, it may expect you to use the lower value as the loan base. This can make the down payment larger than the simple difference between price and the target LTV loan. If the stem explicitly says loan-to-purchase-price or loan-to-appraised-value, use the named base instead.
How many LTV questions are on the Florida real estate exam?+
DBPR does not publish a fixed LTV question count. The current sales associate candidate booklet places Residential Mortgages at 9 percent of the exam and includes mortgage math-finance, while real estate related computations and closing of transactions are 6 percent. Treat LTV as one high-value mortgage math pattern, not as a guaranteed standalone count.
Is LTV the same as down payment percent?+
No. LTV measures the loan compared with value. Down payment percent measures buyer cash compared with purchase price. They are opposites only in a clean scenario where price and value are the same. In a low-appraisal scenario, cash needed as a percent of purchase price can be higher than 100 percent minus LTV.
Does PMI matter for Florida exam LTV questions?+
It can matter as a lending concept. CFPB explains that private mortgage insurance may be required on a conventional loan when the down payment is less than 20 percent. For exam math, remember the relationship between 80 percent LTV and 20 percent down, but do not treat PMI as a Florida tax or licensing rule.
Is this a real mortgage approval calculator?+
No. This tool is built for Florida real estate exam prep. Real lending decisions can include credit, income, debt-to-income ratio, property type, mortgage insurance, loan program rules, and lender overlays.
A buyer pays $400,000. The property appraises at $390,000. The lender allows an 80 percent LTV loan. What is the maximum loan?
Use the lower value: $390,000. Loan amount: $390,000 x 0.80 = $312,000. The buyer's cash gap is larger because the appraisal came in below the purchase price.