52) A promise lacks consideration if a person promises to perform an act or do something he is already under an obligation to do. This is called a(n) ________. 52) A) illusory promise B) preexisting duty C) illegal consideration D) gift promise 53) Dean Campenella is a detective with the California state police.
What about first-time home buyers or those with little to no equity? In today's market, it is prohibitive even for the most frugal of first-time home buyers to come up with a traditional down payment. Houses that sell for $200,000 would require a down payment of $20,000 to $40,000, but there are options. Let's look at some of them.
Standard FHA-insured mortgages require the home buyer to put up a down payment of at least 3.5 percent of the purchase price. This is one of the lowest down payment levels available for mortgages. To get an FHA loan with a 3.5 percent down payment, the home buyer must have a FICO credit score of at least 580. HUD increased the minimum score for a minimum down payment FHA loan from 500 to 580 in January 2010. Approved FHA loan home buyers with credit scores below 580 are required to make a down payment of 10 percent or more of the home's purchase price.