An FHA loan requires a minimum down payment of:
Question & Answer
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0%
0% down payments are not required for FHA loans. This option may confuse FHA loans with VA loans, which can require 0% down payment for eligible veterans and active-duty service members, or USDA loans for eligible rural properties.
3%
3% down payments are the minimum for many conventional loans, particularly for first-time homebuyers through programs like Fannie Mae's HomeReady or Freddie Mac's Home Possible. This is a common point of confusion with FHA requirements.
3.5%
5%
5% down payments are required for some conventional loan programs and jumbo loans, but not for standard FHA loans. This higher percentage may be required for borrowers with lower credit scores who still qualify for FHA financing.
Why is this correct?
FHA loans require a minimum down payment of 3.5% for borrowers with a credit score of 580 or higher. This is a defining characteristic of FHA financing and distinguishes it from conventional loans, which typically require 3% minimum for first-time buyers.
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