A lender offers an investor a maximum 70% LTV loan on the appraised value of a property. If the investor pays $230,000 for the property, and this is 15% more than the appraised value, how much will the investor have to pay as a down payment? First, the sale price is 115% of the appraised value, so the appraised value is $230,000 / 115%, or $200,000. The lender will lend $140,000 (70% of appraised value), so the investor will have to come up with $90,000 ($230,000 – $140,000).
+36916 LTV = loan to value I assume
230000 is 115% of the value (given in the Question) so value is 200 000
If lender will lend 70% of the value 70% x 200 000 = 140 000
invester spends 230 000 and gets 140 000 resulting in investor having to pay the difference: $90000
