A Texas license holder is working with a veteran buyer who wants to use a VA loan. The property fails the VA appraisal's minimum property requirements (MPRs). What is the license holder's appropriate advice?
Correct Answer
B) The buyer can negotiate repairs with the seller, or terminate under the FHA/VA amendatory clause if the property does not meet MPRs
When a property fails VA MPRs, the buyer can negotiate repairs or terminate under the FHA/VA amendatory clause in the TREC promulgated forms. The VA will not guarantee a loan on a property that fails MPRs.
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