Nearly 1 in 5 U.S. buyers uses an FHA loan to finance a home purchase. The program's popularity, in part, is because buyers can make down-payments of just .
When it comes to FHA loans, the traditional, bare-minimum down payment amount is 3.5% of the contract sales price of the home. Since FHA down payments are calculated by multiplying the sale price of the home by 3.5%, if you don’t know the specific sale price of the home, you won’t be able to come up with an exact figure for that down payment.
FHA mortgage insurance consists of a financed upfront fee of 1.75% of your loan amount. A monthly premium is calculated based on loan term and down payment. .. Read More.
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The Minimum Down Payment Required for an FHA Loan. Buying a home with an FHA loan means a low down payment. You don’t need the typical 20% down. In fact, you need a lot less than that. FHA loans require just 3.5% of the purchase price down. Here we discuss how this works and how the low down.
How Your Credit Score Affects Your FHA Down Payment. FHA loans are one of the most popular types of mortgage loans used because of their low credit and down payment requirements. Borrowers with a 580 credit score qualify for an FHA loan with just a 3.5% down payment. Borrowers with a minimum 500 credit score need 10% down.
FHA down payment: 3.5% minimum With the FHA, the minimum down payment depends on your credit score. With a credit score of 580 or higher, the minimum down payment is 3.5%.
Down Payment Amount. FHA loans require a minimum down payment of 3.5 percent as of 2013. The FHA changes the down payment requirement depending on its financial needs. The agency sets down payment guidelines, but lenders may also set more stringent criteria of their own.
“Home Possible,” Freddie Mac’s low-down-payment competitor to both Fannie and FHA, may also be an attractive option for buyers who don’t want to keep paying expensive fha insurance premiums for long.
How To Prequalify For A Fha Home Loan
FHA is the federal housing administration, the largest source of low-down-payment mortgage money in the country. Its minimum down is just 3.5 percent, compared with anywhere from 5 percent to 20.