What is the maximum loan-to-value ratio for an FHA purchase loan with the minimum down payment?
Correct Answer
B) 96.5%
With the 3.5% minimum down payment, the maximum LTV is 96.5% (100% - 3.5% = 96.5%). This allows FHA borrowers to finance up to 96.5% of the home's value while meeting the minimum down payment requirement.
Why This Is the Correct Answer
With the 3.5% minimum down payment, the maximum LTV is 96.5% (100% - 3.5% = 96.5%). This allows FHA borrowers to finance up to 96.5% of the home's value while meeting the minimum down payment requirement.
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At closing, the title company discovers that the property description on the deed differs slightly from the legal description in the loan documents due to a recent survey correction. The mortgage amount is $485,000. What is the most appropriate action?
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