What is the minimum down payment requirement for an FHA loan?
Correct Answer
B) 3.5%
FHA loans require a minimum down payment of 3.5% of the purchase price or appraised value, whichever is less. This is established under HUD guidelines for FHA-insured mortgages.
Why This Is the Correct Answer
FHA loans require a minimum down payment of 3.5% of the purchase price or appraised value, whichever is less. This is established under HUD guidelines for FHA-insured mortgages.
More Mortgage Knowledge Questions
A borrower is comparing two loan offers: Loan A has no points and 4.5% interest rate, Loan B has 2 points and 4.0% interest rate. The loan amount is $400,000. How much will the borrower pay upfront for the points on Loan B?
A lender charges a 1% origination fee on all loans. For a borrower obtaining a $250,000 mortgage, what is the maximum origination fee that can be charged without violating the points and fees test under the ATR/QM rule for a first-lien mortgage?
Under what circumstances can a Qualified Mortgage include a prepayment penalty?
A borrower is considering paying discount points to reduce their interest rate. Each point costs 1% of the loan amount and reduces the rate by 0.25%. On a $300,000 loan, how much would the borrower pay for 2 discount points?
A borrower asks about the difference between discount points and origination fees. What is the most accurate explanation?
People Also Study
Federal Mortgage-Related Laws
23% of exam
Mortgage Loan Origination Activities
25% of exam
Ethics, Fraud & Consumer Protection
17% of exam
Uniform State Test Content
12% of exam
Previous Question
In Alaska, the conforming loan limit is set at 150% of the baseline limit. If the baseline limit is $766,550, what is Alaska's conforming limit?
Next Question
In 2024, a borrower in Alaska is purchasing a single-family home with a loan amount of $850,000. The baseline conforming limit is $766,550, but Alaska has a 50% increase factor. How should this loan be classified?