Real Estate Math

A Delaware buyer obtains a 90% LTV loan on a $280,000 property. What is the down payment required?

A$25,000
B$28,000✓ Correct
C$30,000
D$32,000

Explanation

Down payment = Purchase Price × (1 − LTV) = $280,000 × 0.10 = $28,000. A 90% LTV means the buyer finances 90%, so 10% is the down payment.

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