clear path to homeownership — even without a big savings account.

If saving up for a 20% down payment feels impossible, you’re not alone.

But with an FHA loan, you don’t need to wait years to buy a home — or empty your bank account in the process.

👉 FHA loans offer one of the lowest down payment options available — with the flexibility to use gifts or assistance to help you get there.

Here’s what you need to know about FHA down payments in 2025, and how to make the numbers work for your situation.

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✅ Minimum Down Payment: 3.5%

If your credit score is 580 or higher, FHA allows you to buy a home with just:

🔹 3.5% down

On a $300,000 home, that’s just $10,500 — not $60,000 like a traditional 20% loan.

This is one of the reasons FHA loans are so popular with:

• First-time homebuyers
• Renters tired of waiting
• Buyers with limited savings
• Borrowers rebuilding credit

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🔽 What If Your Credit Score Is Lower?

If your credit score is between 500–579, FHA still allows you to qualify — but you’ll need to put down at least:

🔹 10% down

That means for a $300,000 home, your minimum down payment would be $30,000.

💡 If your credit is under 580, we’ll work with you on a plan — or help you qualify for 3.5% by improving your credit quickly.

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🎁 Can You Use Gift Funds?

Yes! FHA allows you to use 100% of your down payment as a gift, as long as it’s from:

• A family member
• A close friend with a documented relationship
• A government or nonprofit down payment assistance (DPA) program
• An employer or housing agency

📘 No personal loans or credit cards allowed — but we’ll help document your gift properly.

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🏢 Down Payment Assistance (DPA)

You can also combine your FHA loan with local, state, or nonprofit DPA programs.

These programs may offer:

• Grants (that don’t have to be repaid)
• Forgivable loans
• Deferred-payment second mortgages

💬 We’ll help you find eligible programs in your area and guide you through the application.

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📉 Can You Put Down More?

Absolutely — and it comes with benefits:

• Lower mortgage insurance
• Lower monthly payment
• Potential to remove MIP faster (after 11 years with 10%+ down)

But the beauty of FHA? You don’t have to put down more if your budget is tight.

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🧠 Real-Life Example

Buying a $275,000 home with 3.5% down:

• Down payment: $9,625
• Gift funds: $5,000
• Your out-of-pocket: $4,625 (plus closing costs)

💡 Many buyers bring less than $10K to the table — and still walk away homeowners.

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🏢 Why PRMI?

At PRMI, we:

• Help structure your FHA loan with the lowest down payment possible
• Coordinate gift letters and documentation
• Match you with down payment assistance options
• Offer full FHA support in-house, from approval to closing

We’ll show you what’s possible — even if you thought it wasn’t.

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👇 Want to Buy a Home With as Little as 3.5% Down?

Let’s calculate your down payment options, including gift funds or assistance, and show you how close you really are.