Tennessee Real Estate License Exam Practice Question
A veteran has applied for a VA loan to purchase a house with a sale price of $90,000. The Department of Veterans' Affairs (VA) appraised the house at $85,000. In this situation, the veteran
Correct Answer: C
Rationale: In this scenario, the veteran can utilize the VA loan for the appraised value of $85,000, which is less than the sale price of $90,000. Therefore, option C is accurate, as the loan can only cover the appraised value unless the price is adjusted.
Option A is incorrect; a down payment is not typically required for VA loans, and the loan amount cannot exceed the appraised value. Option B is misleading; VA loans do not have a maximum limit of $75,000, as they can vary based on location. Option D is also incorrect; while a seller may agree to a second mortgage, it is not a requirement for the VA loan to be approved.
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