General Mortgage KnowledgeQuestion 165 of 400
On a $400,000 FHA purchase with the minimum down payment, what is the maximum base loan amount (before financing UFMIP)?
a.$386,000
b.$380,000
c.$390,000
d.$372,000
Explanation
FHA maximum financing is 96.5%: 0.965 x $400,000 = $386,000 (a 3.5% / $14,000 down payment). $380,000 is 95%, $372,000 is 93%, and $390,000 does not match 96.5%.
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