A borrower is purchasing a home for $350,000 in an area where the FHA loan limit is $472,030. If they make the minimum down payment, what will be their loan amount?
Correct Answer
A) $337,500
With a 3.5% minimum down payment, the borrower pays $12,250 down ($350,000 × 0.035) and finances $337,500. Since this amount is below the area loan limit of $472,030, it qualifies for FHA financing.
Why This Is the Correct Answer
With a 3.5% minimum down payment, the borrower pays $12,250 down ($350,000 × 0.035) and finances $337,500. Since this amount is below the area loan limit of $472,030, it qualifies for FHA financing.
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