FHA loans are usually available with what type of down payment?

FHA loans, which are backed by the Federal Housing Administration, are designed to make home ownership more accessible, particularly for first-time buyers and those with less-than-perfect credit. One of the key features of FHA loans is that they typically require a small down payment, which can be as low as 3.5% of the purchase price. This lower requirement helps to reduce the financial barrier for borrowers, allowing them to purchase homes without needing to save a large sum of money for a larger down payment.

In contrast, options that suggest no down payment or large down payments do not accurately reflect the characteristics of FHA loans. While there are certain loan programs that might allow for no down payments, such as some VA loans for veterans, FHA loans specifically require a modest down payment to help ensure that borrowers have some level of financial investment in the property. Therefore, the typical requirement of a small down payment makes FHA loans a more feasible option for many potential homeowners.