Finance
A Wyoming lender's appraisal of a subject property at $450,000 but the agreed purchase price is $480,000. Under conventional lending guidelines, the loan is typically based on:
AThe purchase price of $480,000
BThe lower of the appraised value ($450,000) or the purchase price ($480,000)✓ Correct
CThe average of the appraised value and purchase price
DThe purchase price if the buyer can explain the difference
Explanation
Conventional lenders base the loan-to-value calculation on the LOWER of the appraised value or the purchase price. With a $450,000 appraised value, a buyer putting 20% down could borrow 80% x $450,000 = $360,000. The buyer must cover the $30,000 gap between appraised value and purchase price.
Related Wyoming Finance Questions
- A Wyoming property owner receives a demand from their lender that the mortgage be paid in full under a 'due-on-encumbrance' clause. This occurred because the owner:
- A Wyoming commercial lender who requires a 'loan-to-value ratio' of no more than 75% on a $1,500,000 commercial property will lend a maximum of:
- When a Wyoming property is 'underwater' or has 'negative equity,' it means:
- Wyoming real estate investors who purchase properties with hard money loans should expect:
- A Wyoming buyer's debt-to-income ratio (DTI) is calculated as:
- A Wyoming buyer's monthly gross income is $7,500. A conventional lender applies a 28% front-end ratio. What is the maximum PITI payment?
- A Wyoming buyer with a credit score below 580 seeking an FHA loan would be required to make a down payment of:
- The Homeowners Protection Act (PMI Cancellation Act) requires lenders to:
Practice More Wyoming Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Wyoming Quiz →