State Codes and Statutes
Statutes > Virginia > Title-6-2 > Chapter-11 > 6-2-1180§ 6.2-1180. (Effective October 1, 2010) Appraisals; loan-to-value ratios.
A. A savings institution may make a real estate loan only after a qualifiedperson designated by the savings institution has submitted a signed appraisalof the security property, except that an insured or guaranteed loan may bemade on the basis of a valuation of the security property furnished to thesavings institution by the insuring or guaranteeing agency.
B. At the time of origination, a real estate loan may not exceed 100 percentof the appraised fair market value of the security property. During the termof the loan, the loan-to-value ratio may increase above the maximumpermissible percentage if the increase results from an adjustment authorizedby § 6.2-1182. In the case of a home loan secured by borrower-occupiedproperty, the loan balance may not exceed 125 percent of the originalappraised value of the property during the term of the loan, unless the loancontract provides that the payment shall be adjusted at least once every fiveyears, beginning no later than the 10th year of the loan, to a levelsufficient to amortize the loan at the then-existing interest rate and loanbalance for the remaining term of the loan. The 125 percent limitation shallnot apply to that portion of a loan balance that is interest received in theform of a percentage of the appreciation in value of the security property.
(1985, c. 425, § 6.1-194.63; 1991, c. 230, § 6.1-194.151; 2010, c. 794.)
