Finance
An Iowa buyer applies for a $250,000 conventional loan. The lender requires the home to appraise at or above the purchase price. The appraised value comes in at $245,000. The buyer's options include all EXCEPT:
ARenegotiate the purchase price with the seller
BMake up the difference with additional cash
CRequest a second appraisal
DForce the lender to use the purchase price instead of appraised value✓ Correct
Explanation
Lenders base loan amounts on the lesser of purchase price or appraised value. The buyer cannot force the lender to use the purchase price if the appraisal is lower.
Related Iowa Finance Questions
- Iowa's Community Reinvestment Act (CRA) obligations require banks to:
- What is the purpose of private mortgage insurance (PMI) in Iowa residential lending?
- Under the Community Reinvestment Act (CRA), Iowa financial institutions are evaluated on:
- Iowa's graduated payment mortgage (GPM) is characterized by:
- An Iowa farm buyer obtains seller financing at 5% interest on a $400,000 balance. What is the annual interest for the first year?
- Iowa's HMDA (Home Mortgage Disclosure Act) reporting requirements help the public and regulators identify:
- Iowa's rural housing market may benefit from USDA Section 515 loans, which provide:
- An Iowa buyer qualifies for a USDA guaranteed loan. Which statement is TRUE?
Practice More Iowa Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Iowa Quiz →