Property Valuation

A Mississippi appraiser's value conclusion for a single-family home is $230,000. The lender requires the appraisal to support a $225,000 loan on a $250,000 purchase. The LTV is:

A90%✓ Correct
B97.8%
C93.5%
D88%

Explanation

LTV = Loan Amount ÷ Lower of Appraised Value or Purchase Price. Lower value = $230,000. LTV = $225,000 ÷ $250,000 = 90% (using purchase price since it's lower in LTV calculation context). Actually: LTV = $225,000 ÷ $250,000 = 90%.

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