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2018 FHA Down Payment Requirements


One of the benefits of an FHA loan is a very low FHA down payment requirement in 2018. What you may be wondering is what your FHA down payment will be for your particular area or loan amount. The reality is that the FHA down payment requirements are the same regardless as to where you are located according to the FHA guidelines. The minmum down payment will need to be met if you plan to qualify for an FHA loan.

Today, the FHA down payment requirement is 3.5% for new purchase loans in the US. Many people do not know that they are candidates for an FHA loan. We get frequent loan requests from people who have a credit score as low as 500 or from people who have a very small down payment. They find themselves closing on their new home with an FHA loan. However, with a credit score below 580 the down payment may be as much as 10%.

The additional benefit is that your closing costs and other FHA fees can be included in the loan amount. This reduces your out of pocket expenses on the FHA mortgage loan. This is true for properties that are 1-4 units in size. So, if you are thinking about potentially making money in real estate and being a landlord, here is a great way to buy a 4 unit building, live in one of them and rent out the other three with a very low down payment. This is the best way to build wealth.

A word of caution regarding your FHA down payment is that your credit can impact the terms of the FHA mortgage loan including your FHA down payment requirement. Therefore, as you are planning to buy your home, it is important that you also take steps to make sure that your credit is in good shape. The other thing you should be aware of is that some lenders' terms may vary and you may find that your FHA mortgage loan deal could be different than what your friend was able to get. 

There is help for seniors too. Read more about FHA Reverse Mortgages.

Do you own a mobile home? There are FHA Loans for mobile homes. One for when you own the land and another for when your mobile home is in a mobile home park.

There are also FHA Loans for those who are interested in manufactured housing.

Every FHA loan will also have a mortgage insurance premium (MIP) regardless as to what your FHA down payment is. You really need to factor this in prior to deciding whether an FHA mortgage loan is right for you.

FHA Mortgage Rate Quote

Down Payment Gifts - Down Payment Gift Letter will be needed if you plan to use gift funds as part of your down payment.

Download Blank Sample Gift Letter

FHA Down Payment Resources for 2018

FHA Consumer Guide - Zillow

Can FHA Down Payment Be Gifted?

FHA Accused of Insuring Risky Loans

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 Dream Home Financing is a marketing company that provides mortgage related information. Dream Home Financing does not arrange for or originate loans. The request quote and quick application pages, when completed will be sent to third party lenders for consideration.