What is the minimum down payment for an FHA loan?

The minimum down payment for an FHA loan is indeed 3%. FHA loans are designed to encourage home ownership, particularly among first-time homebuyers, and require a lower down payment in comparison to conventional loans. This 3% requirement makes it more accessible for borrowers who may not have significant savings for a larger down payment.

In addition to the lower initial investment, FHA loans also have flexible credit score requirements, which helps a wider range of borrowers qualify. This is particularly significant for individuals who may have lower credit scores or limited credit history.

While other options such as 0%, 5%, or 10% might seem plausible, they do not align with the established FHA guidelines. For instance, a 0% down payment would typically pertain to specific loan programs or assistance opportunities but is not a standard requirement for FHA loans. Similarly, while a 5% or 10% down payment is acceptable for other types of financing, such as certain conventional loans, it exceeds the minimum requirement set by the FHA.