A lender is willing to provide a loan based on certain terms. If a property is appraised at $140,000, what will the loan amount be under those terms?

To determine the loan amount a lender is willing to provide based on an appraised value of a property, it usually involves applying a percentage of the appraised value as the loan-to-value ratio (LTV).

In this scenario, if the appraised value of the property is $140,000 and the lender's terms allow for a specific LTV ratio, then the loan amount can be calculated using this formula:

Loan Amount = Appraised Value × LTV Ratio.

If we consider common LTV ratios, such as 90% which is quite typical for many lenders, the calculation would look like this:

Loan Amount = $140,000 × 0.90 = $126,000.

However, the answer provided, $131,300, indicates a different LTV percentage, approximately 93.786%. This suggests that the lender's willingness to lend is based on a more specific or favorable ratio than what is typically seen. Such a ratio signifies that the lender may have certain policies or terms that allow them to offer a higher loan amount against the appraised value.

This reflects a deeper understanding of how loan amounts can be derived from appraisals, taking into account unique lending practices which can fluctuate based on the real estate market