7 crucial facts about FHA loans
Minimum down payment is 3.5 percent
The FHA requires a down payment of just 3.5 percent of the purchase price of the home. That's a fraction of the percentage typically required on most other loans and a "huge attraction," says Dennis Geist, vice president of government programs at Wells Fargo Home Mortgage in Carlsbad, Calif.
Borrowers can use their own savings to make the down payment. But other allowed sources of cash include a gift from a family member, or a grant from a state or local government down payment assistance program.