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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DPA / First-Time Buyer
State and local down payment assistance programs for first-time homebuyers. Grants, forgivable seconds, and deferred-payment seconds. Available nationwide.
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FHA Loan
Government-insured mortgage with low down payment (3.5%) and flexible credit (580+ FICO). Insured by HUD.
Down Payment
Cash you put toward the home purchase, expressed as a percentage of price. The rest is financed via mortgage.
DPA (Down Payment Assistance)
Programs that provide grants, forgivable loans, or deferred-payment seconds to help with down payment and closing costs.