What is the current required down payment percentage for FHA loans?

The required down payment percentage for FHA loans is currently set at 3.5%. This percentage has remained consistent as part of the FHA loan program, which is designed to make homeownership more accessible to first-time buyers and those with lower credit scores. FHA loans are backed by the Federal Housing Administration, and the 3.5% down payment allows borrowers to enter the housing market with a lower initial investment compared to conventional loans, which typically require a higher down payment.

This minimal down payment option is particularly beneficial as it enables more buyers to qualify for a mortgage, thus promoting homeownership among a wider demographic. It also reflects the FHA’s mission to support affordable housing opportunities. In contrast, other percentages mentioned in the choices represent either higher down payment requirements seen in conventional loans or are outdated figures that don’t apply to the current FHA guidelines.