Real Estate Math

A New Mexico buyer makes a 3.5% down payment on an FHA loan for a $310,000 home. What is the down payment amount?

A$9,300
B$10,850✓ Correct
C$12,400
D$15,500

Explanation

$310,000 × 0.035 = $10,850 FHA down payment. To solve this, multiply the relevant values: $310,000 at 3.5%.. The correct answer is $10,850.. This is a common calculation on the New Mexico real estate exam.

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