Finance

A Georgia homebuyer qualifies for a $280,000 loan. The purchase price is $350,000. What is the LTV ratio?

AA. 70%
BB. 80%✓ Correct
CC. 75%
DD. 85%

Explanation

LTV = Loan Amount ÷ Property Value = $280,000 ÷ $350,000 = 0.80 = 80%.

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