A borrower applies for an FHA loan in a county where the loan limit is $472,030. They want to purchase a duplex for $650,000 and live in one unit while renting the other. What is the maximum FHA loan amount available?
Correct Answer
C) $607,760
For a duplex (2-unit property), the FHA loan limit is 128% of the base loan limit for the area. $472,030 × 1.28 = $604,198.40, but FHA rounds this to $607,760. The borrower must occupy one unit as their primary residence to qualify for an FHA loan on a multi-unit property.
Why This Is the Correct Answer
For a duplex (2-unit property), the FHA loan limit is 128% of the base loan limit for the area. $472,030 × 1.28 = $604,198.40, but FHA rounds this to $607,760. The borrower must occupy one unit as their primary residence to qualify for an FHA loan on a multi-unit property.
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