General Mortgage KnowledgeQuestion 106 of 400
An FHA borrower buys a home for $300,000 with the minimum required down payment. What is the maximum FHA base loan amount?
a.$300,000
b.$289,500
c.$290,000
d.$279,000
Explanation
FHA requires a minimum 3.5% down payment, so max financing is 96.5% x $300,000 = $289,500 (down payment $10,500). $279,000 reflects a 7% down payment, not the FHA minimum.
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