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homeownership.quiz
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url: https://apps.urban.org/features/barriers-homeownership-quiz/
// this is the title of the quiz
# Down Payments Quiz
1) What was the median down payment made in the US for mortgages used to buy a home in 2017 (median = half of consumers put down more and half put down less than this amount)?
- 20%
- 18%
- 15%
* 5%
(image) img/Quiz_iStock-802387494.jpg
(image_credit) Photo by Jacob Lund/iStock.com.
The median down payment has decreased significantly since the housing boom. It was 20 percent in 2006 but was just 5 percent for purchase mortgages in 2017. In April 2018, the median loan-to-value (LTV) ratio stood at 92 percent. We use LTV ratios to understand down payments. The LTV ratio represents the ratio between the amount of the mortgage and the cost of the house—so an LTV ratio of 95 percent means that the loan covers 95 percent of the value of the house, and the remaining 5 percent is what the borrower put down as a down payment. There are, however, significant variations by state.<img class = "alert-img" src = "img/answer1-01.png"/>
2) Which state has the highest median down payment?
- Vermont
- Oregon
- Massachusetts
- California
* All of the above
(image) img/Quiz_iStock-500119771.jpg
(image_credit) Photo by Steve Debenport/iStock.com.
California, Colorado, Hawaii, Oregon, Massachusetts, New Jersey, New York, and Vermont all had the same median down payment of 10 percent in 2017, the highest in the country.<img class = "alert-img" src = "img/answer2-01.png"/>
3) How many states have programs that can help homebuyers secure an affordable down payment?
* 50
- 40
- 25
- 10
- None
(image) img/Quiz_iStock-861202474.jpg
(image_credit) Photo by Shape Charge/iStock.com.
Nationwide, there are 2,527 programs that provide grants or loans to potential homebuyers, including at least one in all 50 states plus the District of Columbia. Check <a target="_blank" href="https://www.urban.org/policy-centers/housing-finance-policy-center/projects/access-and-affordability-interactive-map-and-research-3-barriers-homeownership">this map</a> for the number of active programs in your state. All states offer programs available to buyers regardless of their income.<img class = "alert-img" src = "img/answer3-01.png"/>
4) About how much does a homebuyer need to save to put down 5 percent on the median-priced home in the United States today?
- $5,500
* $13,500
- $20,200
- $50,000
(image) img/Quiz_iStock-809947766.jpg
(image_credit) Photo by Peeterv/iStock.com.
The median home price in the US as of 2017 was $269,680. Check <a target="_blank" href="https://www.urban.org/policy-centers/housing-finance-policy-center/projects/access-and-affordability-interactive-map-and-research-3-barriers-homeownership">this map</a> for the median home price in your state.<img class = "alert-img" src = "img/answer4-01.png"/>
5) Which two numbers represent the smallest down payment a borrower can make on a Federal Housing Administration (FHA) loan and a government-sponsored enterprise (GSE) loan?
- FHA: 3.5%; GSE: 5%
- FHA: 5%; GSE: 3.5%
- FHA: 3.0%; GSE: 3.0%
* FHA: 3.5%; GSE: 3.0%
(image) img/Quiz_iStock-645124288.jpg
(image_credit) Photo by Tempura/iStock.com.
While most GSE mortgages have larger down payments, low-down payment programs offered by <a target="_blank" href="http://myhome.freddiemac.com/buy/down-payment-options.html">Freddie Mac</a> and <a target="_blank" href="https://www.fanniemae.com/content/fact_sheet/97-ltv-options.pdf">Fannie Mae</a>, which require as little as 3 percent down, have been growing in recent years. In 2014, only 1.2 percent of purchase mortgage loans were originated with a loan-to-value ratio of 95 percent or higher; that share has increased nearly tenfold and stood at 11.1 percent in the first half of 2018. Most FHA mortgages have a 3.5 percent down payment or less.<img class = "alert-img" src = "img/answer5-01.png"/>
6) What were the average FICO scores of first-time and repeat homebuyers in 2017?
* First-time: 712; Repeat: 742
- First-time: 690; Repeat: 675
(image) img/Quiz_iStock-471446503.jpg
(image_credit) Photo by Kickstand/iStock.com.
Generally, first-time homebuyers have lower credit scores than repeat homebuyers, although first-time homebuyers that use GSE-guaranteed loans have higher credit scores (739) than repeat homebuyers that use FHA-insured loans (684.)<img class = "alert-img" src = "img/answer6-01.png"/>