1. What is FHA 3.5% Down Payment?

The FHA (Federal Housing Administration) loan program allows qualified buyers to purchase a home with a minimum down payment of 3.5% of the purchase price. This is significantly lower than conventional loans which typically require 5-20% down.

2. How Does the Calculator Work?

The calculator uses simple formulas:

Where:

• Down — Minimum required down payment (USD)
• Home Price — Purchase price of the property (USD)
• Loan — Amount to be financed (USD)

3. Importance of Down Payment Calculation

Details: Understanding your down payment helps determine affordability, required savings, and loan-to-value ratio. The 3.5% minimum makes homeownership more accessible but requires mortgage insurance.

4. Using the Calculator

Tips: Enter the home price in USD. The calculator will automatically compute the minimum 3.5% down payment and corresponding loan amount.

5. Frequently Asked Questions (FAQ)

Q1: Who qualifies for FHA 3.5% down payment?
A: Borrowers with credit scores of 580+ typically qualify for 3.5% down. Those with 500-579 may need 10% down.

Q2: Are there other costs besides the down payment?
A: Yes, you'll also need to pay for closing costs (2-5% of loan), mortgage insurance, and possibly other fees.

Q3: Can the down payment come from gifts?
A: Yes, FHA allows the entire down payment to be gifted from family members or other approved sources.

Q4: Is mortgage insurance required?
A: Yes, FHA loans require both upfront and annual mortgage insurance premiums.

Q5: What's the maximum FHA loan amount?
A: Limits vary by county and are adjusted annually. Check current FHA limits for your area.