The minimum FHA loan down payment is 3.5% if your credit score is at least 580. You have to put at least 10% down if your credit score is 500 to 579.
It’s a big pothole on the road to homeownership: the down payment. FHA loans allow down payments as small as 3.5%.
On a $300,000 home, a 3.5% down payment would cost $10,500. Compare that with the traditional 20% down payment, which would come out to $60,000 on the same home. Big difference. And that’s before closing costs and other buying-a-home expenses.
To get the minimum 3.5% FHA down payment deal, you’ll need a credit score of 580 or higher. If you fall in the range of 500 to 579, you will be required to put at least 10% down. To see where you stand, get your credit score for free.
But FHA loans come with a price tag: mortgage insurance premiums. You’ll pay an upfront fee and ongoing monthly premiums.
Hal M. Bundrick, CFP August 15, 2019 FHA Loan Down Payments https://www.nerdwallet.com/article/mortgages/fha-loans-low-down-payment?trk=FHA_More