Question

A borrower applied for a VA guaranteed first time mortgage for $50,000; however, the property appraised for $46,000. If the buyer still wanted to buy the property which could happen?a. The broker could write up a contract, different from the actual offer price, to take to the lender
b. The VA could allow the borrower to make up the difference in cash
c. The VA could make the borrower get a second mortgage for the difference
d. The veteran could not get a VA loan because it appraised for over $35,000

Answer 1

Answer:

The correct answer is B

Explanation:

In this case, the borrower applied for the VA guarantee for the first time mortgage which amounts to $50,000 but the property that is appraised worth only $46,000. It is $4,000 short ($50,000 - $46,000).

In order to buy the property, the VA should allow the borrower to make up or come up with the difference in the cash that is $4,000. And this will allow or help the borrower in buying the property.