Real Estate Math

A Nebraska buyer's offer is $318,500. If the appraiser values the property at $310,000, what is the maximum conventional loan (at 80% LTV) the lender will base the loan on?

A$248,000✓ Correct
B$254,800
C$255,000
D$310,000

Explanation

Lenders use the LOWER of purchase price or appraised value. Lower = $310,000.

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