A client is purchasing a $750,000 home. What is the minimum down payment required?
Correct Answer
B) $50,000
For a purchase price above $500,000 and below $1.5 million, the minimum down payment is 5% of the first $500,000 plus 10% of the portion above $500,000. For $750,000: 5% x $500,000 = $25,000, plus 10% x $250,000 = $25,000, for a total of $50,000. Since December 15, 2024, this tiered rule runs up to $1.5 million; homes of $1.5 million or more need 20% down.
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