Finance
A Virginia seller agrees to pay 3% of the buyer's closing costs as a seller concession on a conventional loan. If the purchase price is $400,000, the maximum concession is $12,000. With an LTV of 80%, what is Fannie Mae's limit?
A3% ($12,000)
B6% ($24,000)✓ Correct
C9% ($36,000)
D2% ($8,000)
Explanation
For conventional loans with 75.01% to 90% LTV, Fannie Mae permits seller concessions up to 6% of the purchase price.
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