A house had been appraised for the loan at $516,000 and the sales price is $510,000.
The loan-to-value ratio is 85%.
What is the eligible amount of the loan based on this loan-to-value ratio ?
How much additional money will the buyer have to bring to the closing table based on the loan-to-value amount ?
Take your time. The solution is posted below the wildlife photo.
A. $438,600 at 85% LTV
$71,400 additional needed to close
$516,000 appraised value
x
0.85 LTV
=
$438,600 loan amount based on 85% LTV
$510,000 Sales price
minus
$438,600 LTV amount of loan
=
$71,400 additional needed at closing
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