With few exceptions, banks and lending institutions require borrowers to invest upfront money in the home in the form of a down payment. At that point everyone is invested in the success of the relationship and allows for a healthier partnership. Most conventional loans will require anywhere from 10%-20% of the purchase price to come from the borrower it the form of a down payment. The FHA guidelines allow for a lot less of an up front investment from the borrower asking just 3.5% as a down payment.
FHA down payment amounts at 3.5% of the purchase price do not mean that the borrower will pay a higher interest rate or other less than attractive terms, in fact the borrower enjoys most of the same benefits of the conventional mortgage, but they are not forced to invest the up front money.
Great rates, low down payment, bad credit home loans, with great interest rates and terms available. It is the perfect time to see if you qualify for an FHA home loan.
GET STARTED NOW FOR AN FHA HOME LOAN – ours specialists know all about FHA down payment requirements
Down payments can come from the following resources –
- Savings – must be seasoned or documented to have been available for at least 60 days.
- Tax returns – must be documented as coming from state or federal returns.
- Down Payment Assistance Programs