The formula for calculating the down payment on an FHA loan for a property sold for $265,000 would have a down payment of $______.
"The down payment amount is calculated by multiplying the home purchase price times 3.5 percent, or 0.035."
http://homeguides.sfgate.com/much-down-payment-required-fha-loan-3075.html
Oh, okay, so it would be $265,000(0.035)=$9,275
Thanks for the link too.
To calculate the down payment on an FHA loan, you need to know the loan-to-value (LTV) ratio and the purchase price of the property. The LTV ratio is the percentage of the purchase price that is being borrowed.
For an FHA loan, the minimum down payment required is 3.5% of the purchase price if your credit score is 580 or higher. If your credit score is between 500 and 579, the minimum down payment increases to 10%.
For the given property sold for $265,000, we need to determine the down payment based on the LTV ratio.
If your credit score is 580 or higher, the down payment would be:
Down Payment = 3.5% of $265,000
Down Payment = 0.035 * $265,000
Down Payment = $9,275
If your credit score is between 500 and 579, the down payment would be:
Down Payment = 10% of $265,000
Down Payment = 0.10 * $265,000
Down Payment = $26,500
Therefore, the down payment for an FHA loan on a property sold for $265,000 would be $9,275 if your credit score is 580 or higher, or $26,500 if your credit score is between 500 and 579.