How much additional money does a buyer need for a down payment if they saved $14,450 for a property appraised at $72,250 with an 80% loan-to-value ratio?

To determine how much additional money the buyer needs for a down payment, we first calculate the required down payment based on the purchase price and the loan-to-value (LTV) ratio.

The property is appraised at $72,250, and with an 80% loan-to-value ratio, the lender will cover 80% of the appraised value through the loan. This means that the buyer will need to put down the remaining 20% as their down payment.

First, we calculate the loan amount:

Loan amount = 80% of $72,250

Loan amount = 0.80 × $72,250 = $57,800.

Next, we determine the total down payment needed:

Total down payment = 20% of $72,250

Total down payment = 0.20 × $72,250 = $14,450.

The buyer has already saved $14,450 for the down payment. Since this amount matches the total down payment needed based on the LTV ratio, the calculation for additional money needed can focus on any possible additional costs or adjustments.

However, if the actual offered purchase price were adjusted, you would first consider the true necessity of funds in excess of what the buyer has saved.