What Are The FHA Loan Down Payment Requirements?

Oct 24, 2024

4-minute read

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A quaint, grey urban home with a neatly trimmed lawn and a front porch adorned with potted plants.

One of the initial costs of buying a house is a down payment, which is a percentage of the home’s purchase price. Your down payment requirement will depend on factors like the type of mortgage, your credit score, your debt-to-income ratio (DTI) and other personal factors.

If you take out an FHA loan, you’ll have to make a down payment that meets the guidelines set by the Federal Housing Administration (FHA).

How much money is needed for a down payment on a home purchased with an FHA loan? Are there down payment assistance programs or other resources that can help home buyers make a down payment on an FHA loan? We’ll go over these points and more.

How Can Buyers Get Approved For An FHA Loan?

You can qualify for an FHA loan with a FICO® Score as low as 500, but your score will affect your minimum down payment.

If your credit score is between 500 and 579, you’re required to put 10% down. If your credit score is 580 or above, an FHA home loan will require a down payment of 3.5% of the purchase price. This means the minimum down payment for an FHA loan is 3.5%.

Let’s consider an example. If you’re planning to buy a home for $250,000 and your score is at least 580, you’ll need a $8,750 down payment. Your minimum down payment will be $25,000 if your credit score is between 500 and 579.

See What You Qualify For