Finance (alternative)
In Maryland, the maximum seller concession allowed on a VA loan is:
A3% of the purchase price
B4% of the purchase price✓ Correct
C6% of the purchase price
DNo limit
Explanation
VA loans allow seller concessions of up to 4% of the purchase price for 'VA non-allowable' closing costs and other buyer costs.
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Key Terms to Know
Closing Costs
Fees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Math Concepts
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