To determine the down payment needed to qualify for a conventional mortgage, we can use the loan-to-value (LTV) ratio. The LTV ratio is calculated by dividing the loan amount by the appraised value of the property.
In this case, the house is sold for $300,000 and appraised for $290,000. The LTV ratio is given by:
LTV = Loan amount / Appraised value
Since we want to find the loan amount, we can rearrange the formula as:
Loan amount = LTV * Appraised value
To qualify for a conventional mortgage, the typical LTV ratio is around 80%. Let's calculate the loan amount using this LTV ratio:
Loan amount = 0.8 * $290,000
Loan amount = $232,000
Now, the down payment needed is the difference between the purchase price and the loan amount:
Down payment = Purchase price - Loan amount
Down payment = $300,000 - $232,000
Down payment = $68,000
Therefore, the down payment needed to qualify for a conventional mortgage is $68,000 (option d).