Real Estate Math
A home was appraised at $425,000. The lender will lend 80% LTV. The purchase price is $435,000. What is the maximum loan amount?
A$340,000✓ Correct
B$348,000
C$316,000
D$360,000
Explanation
Lenders apply LTV to the LESSER of appraised value or purchase price. Lesser value = $425,000.
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