Final answer:
The Certificate of Reasonable Value (CRV) for a VA guaranteed loan must meet or exceed the property's purchase price or the loan amount. It is based on a VA-approved appraisal and is meant to secure the value of the property for the loan.
Step-by-step explanation:
For a VA guaranteed loan, the Certificate of Reasonable Value (CRV) must be greater than or equal to the property's purchase price or the amount of the loan being guaranteed by the VA, whichever is less. The CRV is established based on an appraisal conducted by a VA-approved appraiser. The purpose of the CRV is to ensure that the value of the property being purchased is sufficient to secure the VA loan. If the CRV is lower than the purchase price, the buyer may renegotiate the price with the seller, pay the difference, or choose to cancel the purchase agreement.