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

The minimum down payment required for an FHA loan is 3.5% of the purchase price or appraised value, whichever is less. This means that if you're buying a home for $200,000, your minimum down payment would be $7,000. This figure allows homebuyers to access homeownership with lower upfront costs compared to conventional loans. The down payment can come from personal savings, financial gifts, or down payment assistance programs. It's essential to note that the down payment is just one factor considered in qualifying for an FHA loan. Borrowers must also meet other criteria like credit score requirements and debt-to-income ratios. The FHA loan program aims to expand homeownership opportunities for individuals who may not meet the criteria for conventional loans.