
June 30, 2017
What Is An FHA Loan Down Payment?
What is an FHA loan down payment? Most people in the house hunting process are familiar or will become familiar with down payments-the money required from the borrower up front which is paid against the principal of the loan. There’s a long-standing notion about the nature of down payments; if a borrower invests a large an amount money up front, they have a bigger stake in making on-time payments and remaining in good standing on the mortgage loan. But that idea isn’t addressed in the FHA loan rulebook. What is discussed is the nature of the minimum required cash investment or down payment on an FHA mortgage. All FHA loans for new purchases will require a minimum FHA loan down payment of 3.5% of the adjusted value of the home. | more...