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    What Down Payment Do I Need for an FHA Loan?

    Updated: April 10 2026 • 7 min read

    Written by Bennett Leckrone
    Bennett Leckrone

    Written by
    Bennett Leckrone
    Writer / Reviewer / Expert

    Bennett Leckrone is the editorial manager and an analyst for Lower. He specializes in making complicated mortgage topics accessible for consumers. That includes both in-depth product guides and in-depth analysis on what economic moves mean for homebuyers and refinancers. He was previously a business reporter with a focus on higher education and fintech at BestColleges. In that role, he reported on the development of fintech and AI curriculum, as well as the rapidly changing nature of finance education. He also wrote guides to help business students navigate AI and online education. He also reported on state politics at Maryland Matters, with a focus on how policy affected people and businesses. He holds a bachelor of science in journalism degree from Ohio University.
    Our Editorial Standards

    Key Takeaways

    • FHA down payment requirements depend on your credit score.
    • You’ll need a minimum credit score of 580 to qualify for an FHA loan with a down payment of 3.5%.
    • If your credit score is between 500 and 580, you can still qualify, but you’ll need a down payment of at least 10%.
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    What Down Payment Do I Need for an FHA Loan?

    FHA loans generally have more flexible down payment and credit score requirements than conventional loans, but exactly what down payment is required depends on your credit score. 

    The down payment you’ll need for an FHA loan depends on your credit score. Borrowers with a credit score of 580 or higher typically need at least 3.5% down. Those with scores between 500 and 579 must put at least 10% down.

    You can use savings, eligible gift funds, or down payment assistance to cover your minimum down payment. Your total cash to close will also include closing costs and FHA mortgage insurance premiums.

    Understanding FHA Loan Down Payment Requirements

    An FHA loan is a mortgage insured by the Federal Housing Administration, which operates under the U.S. Department of Housing and Urban Development (HUD). That insurance allows lenders to approve borrowers with lower down payments and more flexible credit criteria than most conventional loans.

    The FHA minimum down payment is 3.5% for borrowers with credit scores of 580 or higher. Borrowers with credit scores between 500 and 579 are required to make a 10% down payment.

    The program allows you to use a mix of sources, including personal savings, eligible gift funds, and qualified down payment assistance programs, to meet the required down payment percentage.

    FHA loans require mortgage insurance, including an upfront mortgage insurance premium of 1.75% of the base loan amount, which is often rolled into the loan, plus annual mortgage insurance premiums paid monthly. These premiums increase the total cost of financing.

    Keep in mind that the ongoing mortgage insurance of premiums, or MIP, usually last for the life of the loan if your down payment is less than 10%. One way to get rid of those is to refinance into a conventional loan later. 

    How Your Credit Score Affects Your FHA Down Payment

    Your credit score is a three-digit measure of your creditworthiness. For FHA loans, it directly determines your minimum down payment requirement: 3.5% with a 580 or higher score, or 10% if your score is between 500 and 579.

    Because the percentage applies to the home’s purchase price, even small improvements in your credit score can reduce your required down payment by thousands of dollars.

    Keep in mind that individual lenders can apply stricter internal requirements, known as lender overlays. For example, a lender may require a minimum credit score of 600 or 620 even though FHA guidelines allow 580 for a 3.5% down payment.

    Credit score and down payment aren't the only requirements for an FHA loan. Other factors, like your debt-to-income ratio, also play a role in whether you qualify.

    FHA Loan Calculator

    You can use our FHA loan down payment calculator to explore how different credit scores and down payment amounts affect your required cash and monthly mortgage insurance costs. Calculator results are illustrative and not a loan offer.

    FHA Mortgage Calculator

    Estimate your monthly FHA payment including P&I, upfront MIP (UFMIP), annual MIP, and optional property tax.

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    Illustrative estimate only. FHA MIP rules vary by loan term and LTV.
    Estimated monthly payment
    $—
    Enter values and tap Calculate.
    Base loan:$—
    Upfront MIP:$—
    Financed loan:$—

    Monthly breakdown

    Payment mix

    How this calculator works
    • Base loan = Home price − down payment amount.
    • Upfront MIP (UFMIP) = Base loan × UFMIP rate. When financed, this is added to the loan balance used for P&I.
    • Monthly P&I uses standard 30-year fixed amortization on the financed loan amount.
    • Monthly MIP = (Annual MIP rate × Base loan) ÷ 12. Actual MIP depends on loan term, LTV, and case-specific FHA rules.
    • Property taxes (optional) = Home price × annual tax rate ÷ 12.
    Illustrative estimate only. Not a loan offer. FHA MIP rules, rates, and duration vary by loan term, LTV, and origination date.

    Want to get a personalized FHA loan?

     

    What You Can Use for an FHA Down Payment

    FHA guidelines allow several borrower-friendly funding sources:

    • Your own funds: Savings or checking accounts, permitted retirement withdrawals, and proceeds from the sale of assets with proper documentation

    • Gift funds: Money given with no expectation of repayment, typically from family members, close friends, employers, or charitable organizations, documented with a gift letter

    • Down payment assistance programs: Grants or forgivable or deferred loans from state housing finance agencies, local governments, nonprofits, or employers

    Seller contributions cannot be used for the FHA down payment, but they can cover closing costs and prepaid expenses, often up to 6% of the purchase price. That can help preserve your cash.

    Always confirm source eligibility and documentation requirements with your lender early in the process.

    The Bottom Line

    If your credit score is 580 or higher, you’ll need a down payment of 3.5% for an FHA loan. If you credit score is between 500 and 580, you’ll be required to put down 10%.

    Frequently Asked Questions About FHA Loan Down Payments

    What is the minimum down payment required for an FHA loan?

    The minimum down payment is 3.5% with a credit score of 580 or higher, or 10% with a score between 500 and 579.

    Can I use gift funds or assistance programs for my FHA down payment?

    Yes. Eligible gift funds and down payment assistance programs can be used when properly documented.

    How does mortgage insurance affect FHA loan costs?

    FHA loans require both an upfront and annual mortgage insurance premium, which increases the total cost of borrowing.

    What credit score qualifies for the lowest FHA down payment?

    You need a minimum credit score of 580 to qualify for the 3.5% down payment option.

    Can sellers pay my FHA down payment?

    No. Sellers may contribute to closing costs and prepaids up to 6%, but they cannot fund the down payment.

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