Frequently Asked Questions
Your down payment will partially depend on your credit score. The higher your credit score, the lower your down payment can be. The minimum down payment for an FHA loan, however, is 3.5%.
You should also know that the higher your down payment, the less interest you’ll pay over the life of your loan and less you’ll pay month to month.
The Federal Housing Administration changes the loan limits that it will insure every year. The maximum, also known as the ceiling, and the minimum, also known as the floor, vary according to the cost of living in each area. To learn more about the limits in your area, contact a mortgage consultant.
You must have a minimum credit score of 500-579, but will need a minimum down payment of 10%. To be considered eligible for the 3.5% down payment, you need a credit score of 580 or higher.
If your down payment is less than 20%, you will be required to pay mortgage insurance. With and FHA home loan, you’ll pay two types of mortgage insurance premiums. When you get the loan, you’ll pay an upfront premium, which will be .75% of the loan amount. Most of the time, an upfront premium can be rolled into the financed loan. The second type of mortgage premium is an annual premium, which is a paid monthly according the terms of your loan.