Real Estate Math
A home costs $420,000. A buyer makes a 5% down payment and obtains FHA financing. What is the loan amount before adding the UFMIP?
A$378,000
B$399,000✓ Correct
C$394,500
D$420,000
Explanation
Down payment = 5% × $420,000 = $21,000. Loan amount = $420,000 − $21,000 = $399,000.
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