Affiliate Broker Tennessee (TN PSI) National Practice Exam `

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Study for the Affiliate Broker Tennessee National Exam. Practice with flashcards and multiple choice questions, with hints and explanations. Prepare well for your licensing exam!

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What is the amount required for Alison and Brent's FHA loan down payment of $232,500?

$5,000
$8,137.50
$10,500
$12,000

The correct answer is: $8,137.50

To determine the down payment required for an FHA loan, it's important to understand the standard down payment percentage set by the FHA. As of the latest guidelines, the minimum required down payment for an FHA loan is typically 3.5% of the purchase price. In this case, if we take the loan amount of $232,500 and calculate 3.5% of it, we multiply: $232,500 × 0.035 = $8,137.50. This calculation shows that Alison and Brent would need to make a down payment of $8,137.50 for their FHA loan on the $232,500 property. The rationale for choosing this option rests on the FHA’s guidelines, which are designed to facilitate homeownership by lowering the barrier to entry for first-time home buyers. Thus, $8,137.50 is the correct answer for their required down payment.