Real Estate Math

A Virginia buyer is purchasing a $500,000 home with a 5% down payment. If FHA UFMIP is 1.75%, what is the total financed amount (loan + financed UFMIP)?

A$475,000
B$483,312.50✓ Correct
C$491,875
D$500,000

Explanation

Down payment = $500,000 × 5% = $25,000. Base loan = $475,000.

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