FinancingGovernment_backed_loansHARD
A first-time homebuyer has a credit score of 620 and limited savings for a down payment. The buyer's lender recommends an FHA loan. What is the minimum down payment required for an FHA loan with a credit score of at least 580?
Correct Answer
B) 3.5 percent of the purchase price
FHA loans require a minimum down payment of 3.5 percent for borrowers with credit scores of 580 or higher. Borrowers with scores between 500 and 579 must put down at least 10 percent.
Answer Options
A
10 percent of the purchase priceB
3.5 percent of the purchase priceC
No down payment is requiredD
20 percent of the purchase priceWhy This Is the Correct Answer
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Why the Other Options Are Wrong
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Deep Analysis of This Financing Question
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Background Knowledge for Financing
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Related Topics & Key Terms
Key Terms:
FHA_loandown_paymentcredit_scorefirst_time_buyerfinancing
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