California Real Estate Practice Exam

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Study for the California Real Estate Exam. Engage with multiple choice questions and detailed explanations to sharpen your knowledge. Get ready to ace your real estate career!

Practice this question and more.

How much would a purchaser need for a down payment to buy a house costing $330,000 with an 80% loan-to-value ratio offered by the bank?

$66,000
$64,000
$68,000
$70,000

The correct answer is: $66,000

A down payment of 20% (or $66,000) is required to secure the 80% loan-to-value ratio offered by the bank. This means that the bank will provide the remaining 80% of the cost of the house, which in this case would be $264,000. Option B, $64,000, is incorrect because this amount would only cover a loan-to-value ratio of 85%, leaving the purchaser to provide the remaining 15% as a down payment. Option C, $68,000, and Option D, $70,000, are incorrect because these amounts are above the 20% down payment requirement for the 80% loan-to-value ratio.