A borrower wants to purchase a $600,000 home with 10% down in a standard cost area. What type of financing would this require?
Correct Answer
B) Conforming conventional loan only
With 10% down on a $600,000 home, the loan amount would be $540,000. Since this is below the 2024 conforming loan limit of $766,550 for standard cost areas, this would qualify as a conforming conventional loan that can be purchased by Fannie Mae or Freddie Mac.
Why This Is the Correct Answer
With 10% down on a $600,000 home, the loan amount would be $540,000. Since this is below the 2024 conforming loan limit of $766,550 for standard cost areas, this would qualify as a conforming conventional loan that can be purchased by Fannie Mae or Freddie Mac.
More Mortgage Knowledge Questions
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