Real Estate Math
A Montana property has a market value of $300,000. The lender will loan 80% LTV. The buyer has $45,000 for a down payment. Can the buyer qualify for this property?
AYes, the buyer's down payment exceeds the required 20%
BNo, the buyer's down payment is exactly 20% but the down payment is $60,000 required✓ Correct
CYes, the buyer has enough since 80% LTV requires only $45,000
DNo, the buyer needs $30,000 more for a conventional loan
Explanation
Required down payment = $300,000 x 20% = $60,000. The buyer has $45,000 but needs $60,000. The buyer cannot qualify under these terms and is short $15,000. Answer B is correct.
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