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A home is appraised at $320,000. The purchase price is $310,000. The borrower wants a 90% LTV loan. What is the maximum loan amount?

Loan Origination Activities · 27% of the SAFE exameasy

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Correct answer: $279,000

LTV is based on the LOWER of appraised value or purchase price. Lower = $310,000. Maximum loan = $310,000 x 90% = $279,000. The appraised value of $320,000 is NOT used because the purchase price is lower.

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