If an eligible veteran's offer on a home is contingent upon obtaining a VA-guaranteed loan, what may happen if the property's CRV is less than the offer?

In the scenario where an eligible veteran's offer on a home is contingent upon obtaining a VA-guaranteed loan and the property's Certificate of Reasonable Value (CRV) is less than the offer, the correct action is for the veteran to approach the situation by making an additional down payment. This situation arises because VA loans typically limit financing to the CRV amount. If the property appraises for less than the purchase price, the veteran can still proceed with the transaction by covering the difference between the CRV and the offer price with a down payment.

This option allows the veteran to still purchase the home despite the CRV being lower than the offer. The down payment can bridge the gap, enabling the veteran to secure the home they wish to buy while adhering to the limitations of the VA loan program.

The other options do not provide feasible solutions to the problem presented. Withdrawing the offer does not address the veteran’s desire to proceed with securing the home. Negotiating the price with the seller may be an option, but it does not directly solve the issue of the loan being limited by the CRV and would not guarantee that the seller agrees to reduce the price. Requesting a higher loan amount is not viable within the framework of a VA