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, senior director, compliance and fair lending at Treliant Risk Advisors and formerly a vice president of government programs for another lender.
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.