A CV loan, in my limited experience, is what is considered in the mortgage world as a conventional loan. Specifically, I have found that the abbreviation stands for Collateral Valuation. This means the bank places a value on the collateral used to secure the loan and the approved amount is based on that. A conventional CV loan is usually in the neighborhood of a 80/20, where the lender will loan 80 percent of an appraised value of a property. FHA and VA loans have some aspects of CV involved; the difference is they are guaranteed by government agencies, whereas with a CV, the bank writing the loan is the one on the hook in the event of default. I hope this helps a little. If I'm wrong, someone please correct me. Source found here: www.farmermac.com/lenders/Collateral/cv/CVGuide/Open_CVGuide.aspx?<wbr />ID=4 -
Answer Submitted on Thu, May 14 2009
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