How much down payment do I need for FHA?

3.5% with 580+ FICO. 10% with 500-579 FICO. Down payment can come from gift funds or DPA programs.

FHA's minimum down payment scales with FICO: 3.5% (96.5% LTV) with 580+ FICO, or 10% (90% LTV) with 500-579 FICO. The 3.5% can come from your own savings, gift funds from family, or down payment assistance (DPA) programs. Gift funds require a documented gift letter and source verification. DPA programs (state, county, city, or occupation-specific) can cover most or all of the down payment plus closing costs — some are outright grants, others are forgivable seconds (forgiven over 5-15 years if you stay), or deferred-payment seconds (paid back at sale). FHA also accepts seller credit toward closing costs (up to 6% of sale price), which combined with DPA can sometimes get you into a home with very little out of pocket. The trade-off for FHA's low down payment is mortgage insurance for life of loan (if down < 10%) or 11 years (if down ≥ 10%).

People also ask

Can I use a credit card for the FHA down payment?

No. Borrowed funds (credit cards, personal loans) cannot be used for down payment. The source must be your own savings, documented gift funds, or DPA.

What is the maximum FHA seller credit?

6% of the sale price toward closing costs and prepaid items (taxes, insurance, escrow setup). Cannot be applied toward down payment.

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Today's mortgage rates

Conventional

5.875%

5.911% APR

FHA

5.250%

5.278% APR

VA

5.250%

5.275% APR

Conv: 80% LTV, 780 FICO. FHA: 96.5% LTV, 680 FICO. VA: 100% LTV, 680 FICO. 30-yr fixed. Your rate may vary.