A couple is required by their lender to have a down payment of 20% of the purchase price of the home they want to buy. If the couple has saved $35,000, what is the most expensive home the couple can afford to buy?

Multiply 35,000 times 5 to get $175,000 as your answer. $175,000 is your answer because $35,000 is 20% of the price, which is what the couple personally has to spend on a house. The remaining costs are paid by mortgage lenders.