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natka813 [3]
3 years ago
10

Ms. Nation, an eligible veteran, made an offer of $95,000 to purchase a condo she will finance with a VA-guaranteed loan. Four w

eeks after the offer was accepted, a certificate of reasonable value (CRV) for $92,000 was issued for the property. In this case:
a. the veteran may withdraw from the transaction without penalty or negotiate with the seller to reduce the price to $92,000
b. the seller can finance a second mortgage for the remaining balance
c. the veteran can purchase the property, provided she can get an additional loan for a $3,000 down payment
d. the veteran can wrap the $3,000 into the financed loan costs
Social Studies
1 answer:
Alisiya [41]3 years ago
4 0

Answer: A. The veteran may withdraw from the transaction without penalty or negotiate with the seller to reduce the price to $92,000

Explanation: The certificate of reasonable value (CRV) is a document issued by the Department of Veterans Affairs as a prerequisite for a VA loan. It is based on an approved appraisal and establishes the maximum value of the property for VA purposes and,as a result,the maximum size of the VA loan. This means that the highest loan amount Ms. Nation can get is $92000.

In this instance, Ms. Nation may negotiate with the seller to bring the price down to $92000, but if the seller insists that they won't sell below $95000, then the law permits Ms. Nation to withdraw from the transaction without any penalty against her.

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