Quick Answer
With a credit score of 580 or higher, you can put down as little as 3.5 percent. With a score from 500 to 579, the loan can be at most 90 percent of the home's value. Below 500, you can't get an FHA loan. You must live in the home, and you'll pay FHA mortgage insurance.
What credit score do you need?
HUD's rules set three bands. With a score of 580 or higher, you can get the most financing, with a minimum down payment of 3.5 percent. With a score from 500 to 579, the loan is limited to 90 percent of the home's value, so you'd put down at least 10 percent. Below 500, you aren't eligible for an FHA loan. Lenders can set stricter rules of their own.
How much do you need for a down payment?
At least 3.5 percent of the home's value for most buyers, as HUD calls it, the minimum required investment. You may also need money for closing costs. Many states and local groups offer programs that help with a down payment or closing costs.
What does FHA mortgage insurance cost?
Mortgage insurance is required on every FHA loan. There's an upfront premium of 1.75 percent of the loan, usually added to the loan, and a yearly premium paid monthly. The yearly premium depends on your loan size, down payment and term. Our FHA vs conventional calculator works it out from HUD's table.
Do you have to live in the home?
Yes. At least one borrower must move in within 60 days of signing and plan to live there for at least a year.
How big can an FHA loan be?
It depends on your county. For a one-unit home in 2026, FHA limits run from $541,287 in lower-cost areas to $1,249,125 in the highest-cost areas.
Common Questions
Does FHA lend the money?
No. Private lenders make FHA loans. The FHA, part of HUD, insures them, which lets lenders offer terms they might not otherwise.
Can I use an FHA loan for a rental property?
Not as an investment. At least one borrower must move in within 60 days of closing and plan to live there for at least a year.
Sources
This guide is general information, not advice about your situation.