Finance

A Montana buyer uses an FHA loan with a 3.5% down payment on a $250,000 home. What is the required down payment?

A$5,000
B$7,500
C$8,750✓ Correct
D$12,500

Explanation

FHA down payment = $250,000 × 3.5% = $8,750. To solve this, multiply the relevant values: $250,000 at 3.5%.. The correct answer is $8,750.. This is a common calculation on the Montana real estate exam.

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