Virginia State Real Estate Exam Practice Question
A couple's home appraises for $92,500. With an 85 % loan-to-value ratio, the minimum down payment is
Correct Answer: D
Rationale: To determine the minimum down payment based on an 85% loan-to-value (LTV) ratio, first calculate the loan amount. An 85% LTV means the loan covers 85% of the appraised value.
Loan amount = 85% of $92,500 = $78,625.
Therefore, the remaining 15% represents the down payment:
Down payment = 15% of $92,500 = $13,875.
Option D correctly reflects this calculation.
Options A ($6,166), B ($7,862), and C ($10,882) do not align with the calculated down payment based on the 85% LTV ratio, making them incorrect.
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