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Key takeaways. FHA loans require a minimum 3.5 percent down payment for borrowers with a credit score of 580 or more. Borrowers with a credit score of 500 to 579 need to put 10 percent down.
For example, if you’re an FHA borrower who opts for a 30-year term and a 3.5 percent down payment, you’ll pay 0.55 percent of the loan amount, divided by 12 and added to your monthly payment.
Among the challenges faced by homebuyers, 13% of all buyers and 24% of those under the age of 37 find the down payment requirement to be the most daunting task. On average, the down payment amount is $6,624. FHA borrowers have an average debt-to-income ratio of 40.34%, and the typical FHA loan amount is $191,650.
For FHA borrowers who opt for a 30-year term and a 3.5 percent down payment, you’ll pay 0.55 percent of the loan amount, divided by 12 and added to your monthly payment.
FHA also allows gifts to be used for down payment from the following sources: the borrower's relative; the borrower's employer or labor union; a close friend with a clearly defined and documented interest in the borrower; a charitable organization; a governmental agency or public entity that has a program providing home ownership assistance [26]
Source: Bankrate’s Down Payment Survey. ... the minimum mortgage down payment is 3 percent. FHA loans require a down payment of 3.5 percent with a credit score of 580 or higher. For scores ...
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