12. If a home sells for $290,000 and has been appraised at $286,000, what is the minimum amount of cash that a buyer under a VA loan will need to pay at closing?
- Question #12
- Answer: D
- Explanation: A VA loan will not be guaranteed for more than the appraised value of the property as set forth in the Certificate of Reasonable Value. Therefore, if a property is appraised for $4,000 less than the sale price, a VA borrower will need to pay at least $4,000 in cash to complete the sale. (The borrower will probably need to pay more, though, in order to pay for closing costs.)