Down Payment Quiz

1. What is a down payment in real estate?

The monthly mortgage payment The initial payment made by the buyer toward the purchase price The closing costs The property tax payment

2. What is the typical minimum down payment for a conventional mortgage?

0% 3% 20% 10%

3. What down payment percentage is required for an FHA loan?

20% 3.5% 0% 5%

4. What is the advantage of making a 20% down payment?

It eliminates the need for home insurance It eliminates the need for private mortgage insurance (PMI) It guarantees loan approval It reduces property taxes

5. Can gift money be used for a down payment?

No, down payments must come from personal savings Yes, but with documentation and lender approval Only from family members Yes, without any restrictions

6. What is the VA loan down payment requirement for eligible veterans?

10% 0% 5% 20%

7. What is down payment assistance (DPA)?

A type of mortgage insurance Programs that help buyers cover their down payment costs A government grant for home repairs A tax refund program

8. What is the typical down payment requirement for a USDA loan?

10% 20% 0% 5%

9. What happens if you put down less than 20% on a conventional loan?

You will pay a higher interest rate You will be required to pay private mortgage insurance (PMI) Your loan will be automatically denied You will need to pay higher closing costs

10. What is an earnest money deposit?

The same as a down payment A deposit made when going under contract to show good faith The final payment at closing A fee paid to the real estate agent

Quiz Results