How much down payment does FHA require?
FHA does not require 20% down. Eligible borrowers may qualify with 3.5% down at a credit score of 580 or above. FHA guidelines may allow 500–579 with at least 10% down, although lenders can set stricter requirements. Closing costs and prepaid expenses are separate.
What this actually means.
On a $400,000 purchase, 3.5% is $14,000 — before closing costs and prepaids. The minimum required investment must come from the borrower's own funds or eligible gift sources, not from the seller.
What this looks like on a real file.
Where this can move.
Gift source and donor eligibility, seller credit limits, down payment assistance program rules, and source-of-funds documentation can change the answer.
The cleanest action from here.
Ask the question. Get the straight answer.
Send the scenario and I'll tell you what I'm seeing. No application fee. No long form just to get a basic answer.
Educational only. FHA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with HUD, FHA, or any government agency.