Real Estate Math
A buyer in NC offers to purchase a property subject to a financing contingency of $260,000 at 6% for 30 years. If the appraised value comes in at $270,000 and the purchase price is $280,000, how much must the buyer pay above the appraised loan base?
A$0
B$10,000✓ Correct
C$20,000
D$7,800
Explanation
The lender bases the loan on the lesser of appraised value or purchase price = $270,000. At 6% LTV for the maximum loan, the gap = $280,000 (purchase price) - $270,000 (appraised value) = $10,000 the buyer must cover above the normal down payment.
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