FHA loans are popular with mortgage borrowers because of lower down payment requirements and less stringent lending standards. simply stated, an FHA loan is a mortgage insured by the Federal Housing.
FHA Down Payment. The FHA down payment amount depends on your credit score. 500 credit score requires a 10% down payment; 580 credit score requires a 3.5% down payment; Unlike conventional loans which do not require mortgage insurance if a borrower has 20% down. FHA loans will require mortgage insurance regardless of the down payment. Down.