What are the FHA loan down payment requirements? It’s a common misunderstanding that FHA rules for down payment are different for each state. Actually, the FHA loan rules require a minimum 3.5% down payment on new purchase loans.
According to FHA.gov, “Your down payment can be as low as 3.5% of the purchase price, and most of your closing costs and fees can be included in the loan. Available on 1-4 unit properties.”
The primary issue is that borrowers realize there are other factors that influence the amount of the down payment. For example, an applicant who do not qualify for a competitive conventional loan may not be able to get the lowest down payment. Credit problems and other factors can change the lender’s impression of your credit worthiness. This may affect the rate, terms and down payment you qualify for with that particular lender.
Keep in mind that some FHA lenders may have higher down payment requirements based on other factors. The lender’s requirements can vary from loan to loan. The FHA 3.5% minimum is not a guarantee that your lender will offer you this loan. The amount of your down payment will vary depending in your individual circumstances.