A borrower wants to finance a $600,000 home purchase with an FHA loan in an area where the conforming loan limit is $766,550 and the FHA loan limit is $472,030. What is the maximum FHA loan amount available?
Correct Answer
D) This property is not eligible for FHA financing
The property price of $600,000 exceeds the FHA loan limit of $472,030 for the area. Even with the minimum 3.5% down payment, the loan amount would be $579,750, which exceeds the FHA limit, making this property ineligible for FHA financing.
Why This Is the Correct Answer
The property price of $600,000 exceeds the FHA loan limit of $472,030 for the area. Even with the minimum 3.5% down payment, the loan amount would be $579,750, which exceeds the FHA limit, making this property ineligible for FHA financing.
More Mortgage Knowledge Questions
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A borrower asks about the difference between discount points and origination fees. What is the most accurate explanation?
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