March 12, 2012
One of the major differences in FHA loans compared to their conventional loan counterparts is the amount of down payment required. FHA loan borrowers are required to pay a minimum of 3.5%. Compare that to conventional mortgages, which have down payments that vary depending on the lender.
You may be told by one bank that five percent is required, while another may ask for 10%. Your credit rating and other factors can affect how much money down is required for a conventional mortgage. While this is also true of FHA insured home loans, the minimum required down payment is often substantially less.
For FHA loans, in some situations the down payment could be as low as $100–this is true in cases where the borrower is buying a HUD-owned home, one that has been repossessed by HUD and placed back on the market.
One frequently asked question about FHA home loans is,
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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