FHA loans require a 3.5% down payment, allowing families the opportunity to purchase a primary residence with less upfront cost than traditional conventional lending options.
Here are a few program requirements:
- Down payment funds can come from various sources, including savings, gifts from family, or state and local assistance programs
- FHA allows for higher debt ratios than any other loan program available
- A stable employment history of at least 2 years is required
- The property must be a primary residence and meet certain safety and livable standards, as determined by an FHA appraisal
- You must meet the minimum credit score requirements. However, options exist for lower credit scores, though some require larger down payments