A borrower is purchasing a home with an FHA loan. The purchase price is $280,000 and the borrower's credit score is 612. What is the minimum down payment the borrower must bring to closing?

Correct answer: $9,800

A credit score of 612 is at or above the 580 minimum threshold, which means the borrower qualifies for the maximum FHA LTV of 96.5%, requiring only a 3.5% down payment. Minimum down payment = $280,000 × 3.5% = $9,800. $14,000 represents a 5% down payment (not an FHA threshold). $28,000 represents 10% down, which would only be required for scores between 500-579. $16,800 represents 6% and is not a standard FHA down payment level.