Missed to ask this

Hi helpjuly,

The minimum down payment required for an FHA loan is 3.5% of the loan amount. However, apart from this down payment, you are also required to pay an upfront mortgage insurance premium of 1.75%.

minimum down payment required for FHA loan is 3.5%......

welcome to the forum

FHA minimum down payment for a home mortgage loan through the FHA program changed from 3% to 3.5%.
With the down payment increase to 3.5% also comes updated loan limits for those seeking to get a home loan through the FHA program.

Whay do We need to pay

mortgage insurance premium of 1.75%

Thanks

Mortgage insurance is an insurance policy which compensates lenders or investors for losses due to the default of a mortgage loan.

Thank you angela

talk to you in next post

Whay is MIP is high with FHA loan?

Do we need pay any MIP foor a conventioanl loan with PMI?

FHA is just insuring loans offered by private lender. FHA loans protects lender against any default. in case of any default,

since they are liable to pay to lender in case of default, they need some source of income which is nothing but MIP.

I got that part

But my question was about the upfront 1.75% which we need to pay when we use the FHA loan

yes. it is standard cost & you have to pay upfront 1.75% of property's appraisal value.

Ok thanks