How Much of a Down Payment Is Required for an FHA Loan?

how much is fha down payment

FHA mortgages allow a home purchase with a low down payment.

History

In January 2009, the minimum down payment for an FHA mortgage was changed from 3 percent to 3.5 percent. In early 2010, an added level of down payment requirement was established for prospective buyers with low credit scores. An FHA mortgage for a borrower with a credit score of less than 580 requires a 10 percent down payment.

Function

Most home buyers who get an FHA-insured mortgage will qualify to pay the 3.5 percent down payment. The down payment amount is calculated by multiplying the home purchase price times 3.5 percent, or 0.035. For example, the required down payment on a $350,000 home would be $12,250. The home buyer would have

to bring this amount plus any additional closing costs when the papers are signed to buy the house.

Effects

Considerations

Trending in Your Area

How to Decorate With Wall Hangings

Decorating with wall hangings is something you can do.

  • Exotic Decorating Styles

    Exotic decorating styles are a great opportunity to.

  • How to Use Books as a Nightstand Decoration

    When you use books as a nightstand decoration, you're.

    Fruit Ripening: Highbush vs. Lowbush.

    http://homeguides.sfgate.com/much-down-payment-required-fha-loan-3075.html how much is fha down payment
  • Source: homeguides.sfgate.com

    Category: Bank

    Similar articles: