FinancingLoan_typesEASY
Lena is buying a home for $280,000 with FHA financing. Assuming the minimum required 3.5% down payment applies, how much cash must she contribute for the down payment?
Correct Answer
C) $9,800
The correct down payment is $9,800. Formula: Down payment = Purchase price × 3.5% = $280,000 × 0.035 = $9,800. FHA is known for allowing qualifying borrowers to purchase with a minimum 3.5% investment, so that percentage is the correct base for the calculation.
Answer Options
A
$8,400B
$11,200C
$9,800D
$14,000Why This Is the Correct Answer
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Related Topics & Key Terms
Key Terms:
fha_loansdown_paymentloan_mathminimum_investment
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