Finance
An FHA loan requires a minimum down payment of:
A0% — no down payment required
B3.5% of the purchase price✓ Correct
C5% of the purchase price
D10% of the purchase price
Explanation
FHA loans require a minimum down payment of 3.5% for borrowers with a credit score of 580 or higher. This makes FHA loans popular with first-time buyers who have limited cash savings.
Related Alabama Finance Questions
- In Alabama, a mortgage that covers more than one property is called a:
- The margin in an ARM loan is:
- Which of the following correctly describes a 'wraparound mortgage'?
- Which of the following federal laws created the Consumer Financial Protection Bureau (CFPB) to oversee mortgage lending?
- An Alabama real estate agent advising a buyer on financing should know that the maximum conventional loan amount conforming to Fannie Mae and Freddie Mac limits is referred to as the:
- Which of the following best describes 'seller concessions' in a real estate transaction?
- A borrower's front-end debt-to-income ratio (housing ratio) compares the proposed housing expense to:
- Under Alabama mortgage law, a lender's right to demand full loan repayment if the property is sold is called a(n):
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →