Question

An eligible veteran made an offer of $225,000 to purchase a home contingent upon obtaining a no-down payment U.S department of Veterans Affairs (VA) guaranteed loan. Three weeks after the offer was accepted, the VA issued a certificate of reasonable value (CRV) for the $222,000 for the property. In this case, the veteran may:

A. withdraw from the sale with a three-point penalty
B. withdraw from the sale on payment of a commission to the seller's broker
C. purchase the property by making a $3,000 cash payment
D. seek secondary funding for the $3,0000

Answer 1

The veteran may proceed with buying the home by covering the $3,000 difference with a cash payment, which makes up the shortfall between the offer price and the VA's appraisal value.

Step-by-step explanation:

The question relates to a real estate transaction involving a veteran who made a purchase offer on a home with the intention of using a U.S. Department of Veterans Affairs (VA) guaranteed loan. The VA appraised the home at a lower value than the offer amount, resulting in a discrepancy. According to the information provided, the veteran may purchase the property by making a $3,000 cash payment to cover the difference between the offer price and the VA appraisal, which is the certificate of reasonable value (CRV). This option allows the veteran to proceed with the purchase without seeking additional financing or backing out of the sale. However, the specifics of the case might require the veteran to consider other options as well, such as renegotiating the sale price, or looking into secondary financing for the $3,000 difference if they are unable or unwilling to pay it upfront.