How Much Down Do I Need With FHA Financing?
August 28th, 2008 By Peter G. Miller
At this time, the down payment formula is essentially 3.5 percent down for those with a credit score above 580 and 10% for individuals with a credit score between 500 and 579. If you borrow $100,000 under the FHA program, you would need about $3,500 for a down payment in the best case.
Be aware however, that in addition to the downpayment you will need additional cash funds for closing. How much you need will depend in large part on the terms of the sale agreement. Also, Congress is considering a reduction to the down payment requirement.
For specifics and details, ask for current information from lenders and brokers. Have them provide a model transaction so you can see basic costs. Ask for a good faith estimate of closing costs.
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