2016 FHA Down Payment

Mortgage rates

FHA World - 2016 FHA Down Payment

FHA requires a minimum down payment of 3.50% of the purchase price. The funds may be the borrower's own funds, a gift from a family member, rent credit or borrowed.

FHA loans have been helping people become homeowners since 1934. The FHA insures the loan, so you can get a better deal.

  • Low down payments
  • Low closing costs
  • Easy credit qualifying

FHA World - FHA Down Payment

If you will be using your own funds for the down payment you will have to provide three recent months statements showing the funds in your account. If the down payment will be a gift a signed gift letter will be needed from the giver. Ability to give the gift will also be needed. A statement from the giver's account will be needed showing the funds available. Any and all gift funds must be documented with canceled checks or wire transfer.

FHA World - FHA Minimum Credit Score

Generally, a borrower who has made timely payments for the last 12 months serves as a guide and demonstrates their willingness to repay future credit obligations. New FHA policy changes require minimum FICO credit score to be 580 for 96.5% down payment. These Fico credit score requirements went into effect in the spring 2010. However, most individual lenders will still require credit scores higher than 640.

A perfect credit score is not needed for an FHA loan approval. In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for a FHA loan than a for a conventional loan. Scores down to 500 are accepted if there are compensating factors that offset the credit risk. 

Credit score below 580 require a larger (10)% down payment on a purchase and gift funds are not allowed.

Minimum Credit Score of 500

FHA World - Serving the state of Florida 

2016 FHA Down Payment

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FHA Credit Score needed to buy
a house or refinance


FHA loan requirements new borrowers with less than a 580 credit score will be required to put down at least 10%

FHA requires a minimum credit score of 500 to buy a home or refinance


Bankruptcy

Chapter 7 Bankruptcy at least two years must have elapsed since the discharge date


Foreclosure

Foreclosure must have been resolved for at least 3 years

Government loan: Seasoning is determined by the date the claim was paid

Loans other than Government: Seasoning is determined by the date of sale the lender sold the property


Short Sale

FHA guidelines requires three year past from the date of sale of the property


What documentation will I need?

  • W2's or Personal tax returns for 2 years
  • Current pay stubs for the past month
  • Bank statements for last 2 months (all pages)
  • Clear copy of Driver’s License (front and back)
  • Clear copy of SS card (front and back)

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