Perhaps the largest advantage of the FHA loan is that borrowers with less-than-perfect credit can make a down payment as little as 3.5%.
However, in order to qualify for the 3.5 percent down payment, borrowers must have a credit score of at least 580. Applicants with a sub-580 credit score will be required to make a 10 percent down payment.
Let’s compare the minimum required down payment by mortgage type:
| Loan Type | Minimum Down Payment Required |
|---|---|
| FHA | 3.5% |
| USDA | 0% |
| Conventional | Typically 5 - 20% |
| VA | 0% |
