Final answer:
The buyer with a credit score of 703 would have to pay a down payment of $330 on a $156,000 FHA loan.
Step-by-step explanation:
To determine the down payment for an FHA loan, we first need to calculate the loan amount. For an FHA loan, the maximum loan-to-value ratio is 96.5%. This means that the loan amount can be up to 96.5% of the appraised value of the house. In this case, the loan amount would be $162,000 * 0.965 = $156,330.
The down payment is the difference between the loan amount and the purchase price of the house. So, the down payment would be $156,330 - $156,000 = $330.
Therefore, a buyer with a credit score of 703 would have to pay a down payment of $330 on a $156,000 FHA loan if the house was appraised for $162,000.