What does the certificate of reasonable value (CRV) pertain to?

The certificate of reasonable value (CRV) is specifically associated with the appraisal performed on a property that is intended for a VA loan. When a veteran applies for a VA loan, the Department of Veterans Affairs requires an appraisal to determine the property's value in relation to the loan amount being requested. The CRV reflects the appraised value, which helps to ensure that veterans are not paying more for a property than it is worth, thus providing a level of protection for both the borrower and the lender.

This certification serves as an official document that indicates the property meets the VA's requirements for loans and ensures that the amount financed does not exceed the appraised value. The CRV plays a crucial role in the mortgage process for veterans, as it helps guide lenders and ensures compliance with VA guidelines.