A borrower with a 560 credit score wants to use gift funds for their entire down payment on an FHA loan. What is the minimum down payment percentage required?
Correct Answer
C) 10.0%
Borrowers with credit scores between 500-579 require a minimum 10% down payment for FHA loans. While gift funds can be used for the down payment, the minimum percentage requirement is based on the credit score. The borrower must still meet the 10% minimum despite using gift funds.
Why This Is the Correct Answer
Borrowers with credit scores between 500-579 require a minimum 10% down payment for FHA loans. While gift funds can be used for the down payment, the minimum percentage requirement is based on the credit score. The borrower must still meet the 10% minimum despite using gift funds.
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