General Mortgage Knowledge · 20% of the SAFE examhard
Correct answer: Maximum loan of $288,000 with $32,000 down
A borrower with a credit score between 500 and 579 is limited to a maximum LTV of 90% under FHA guidelines. The maximum loan amount is $320,000 × 90% = $288,000, requiring a minimum down payment of $320,000 × 10% = $32,000. "Maximum loan of $288,000 with $32,000 down" reflects the 96.5% LTV calculation ($320,000 × 96.5% = $308,800), which only applies to borrowers with scores of 580 or above. "Maximum loan of $320,000 with $0 down — FHA has no d..." reflects an 95% LTV, which is not an FHA tier. "Maximum loan of $308,800 with $11,200 down" is incorrect because FHA requires a minimum 10% down for scores below 580 and does not offer zero-down financing.
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