Value is what the appraiser says to your lender the property is worth and it does not have anything to do with how much you may have agreed to pay for the property. LTV is the amount your lender is willing to give you. Quick example. Let's say the appraiser says the property is valued at $100,000 and your lender will do 80% LTV. That means they will loan you $80,000. If you have agreed to pay $105,000 for the home, then the extra $5,000 is down to you. There are of course contingencies in a standard contract that deal with such a situation as it does come up all the time.