FHA Down Payment Assistance: Everything You Need To Know

Mar 28, 2024

5-minute read

Share:

Mother and daughter laughing while baking, depicting a cheerful moment during a baking activity.

Loans backed by the Federal Housing Administration (FHA), don’t require you to be perfect. Because of this, FHA loans can be the best option if you’re building up your credit or you’ve had blemishes in the past. They also allow for down payments as low as 3.5%.

But even with a lower down payment requirement, you may still find it hard to get the funds needed to pay it. If you can afford the monthly payment, but the upfront cost is an issue, you may be able to use down payment assistance on FHA loans.

Can You Get Down Payment Assistance With An FHA Loan?

The down payment requirements for an FHA loan vary depending on your qualifying credit score. If your median credit score is in the range of 500 – 579, you need a 10% down payment. But most lenders, including Rocket Mortgage®, require a median FICO® Score of at least 580. At 580 or better, the minimum down payment is 3.5% of the purchase price.

Home buyers with mortgages backed by the FHA can qualify for and use down payment assistance toward their purchase. However, the FHA doesn’t offer this type of program directly to borrowers.

FHA loans offer one path to affordable housing. Down payment assistance can further that objective.

See What You Qualify For