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A home appraises at $220,000 but the purchase price is $230,000. With a 90% LTV loan, what is the maximum loan amount?

General Mortgage Knowledge · 20% of the SAFE exameasy

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Correct answer: $198,000

For LTV purposes, use the LESSER of appraised value or purchase price = $220,000. Maximum loan = $220,000 × 90% = $198,000.

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