FHA Guide
Can I Buy a Home With 3.5% Down?
Yes — FHA lets many buyers purchase a primary residence with just 3.5% down when the credit score is 580 or higher. Gift funds can cover the entire down payment when documented correctly.
How 3.5% Down Works on FHA
Low down payment is the headline — cash to close is the real number.
Ways to Reduce Cash to Close
3.5% down is only one lever. These moves often matter more at the closing table.
- Use eligible gift funds for down payment or closing costs
- Negotiate seller-paid closing costs within FHA limits
- Compare lender credits vs. a slightly higher rate
- Finance the upfront MIP instead of paying it in cash
- Ask us for a full cash-to-close worksheet before you offer
What You Still Need to Document
Low down payment does not mean light paperwork.
- Source of down payment and earnest money
- Gift letter and donor bank evidence (if gifted)
- Two months of asset statements in many files
- Occupancy intent for a primary residence
- Credit score meeting the 3.5% down tier
How We Structure Your Offer
The right contract language keeps FHA 3.5% down files from stalling in underwriting.
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Keep Exploring
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Frequently Asked Questions
Get Pre-Approved With 3.5% Down
We will map your cash to close — down payment, closing costs, and MIP — before you write an offer.