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Why does my FHA loan require a 20% down?

Can anyone answer why an FHA loan would need a 20% down on a loan that’s less than $300k? My DTI isn’t that high so I’m wondering why my lender would require such a high down payment. by junignacio166 from Altadena, California. Sep 8th 2022 Reply


Dave Skow (daveskow)
#16 ranked lender in Washington - 372 contributions

ask your lender / loan officer ......FHA loans allow as little as a 3.5% down payment so if you can qualify for a higher amount and need to make a lower down payment - you should be allowed to do so ...2) consider using a conventional loan as the pricing will be similar plus you can avoid costly FHA mtg ins fees and also the costly mortgage insurance

Sep 9th 2022
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Dan Paladin (dpaladin)
#1 ranked lender in California - 769 contributions

Normally you would not...that also does not avoid mortgage insurance with FHA. Min allowed is 3.5%. More info would be needed to determine why. Feel free to reach out to me at 562.261.5500

Sep 9th 2022
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,747 contributions

Two things come to my mind. 1) It isn't an FHA loan they are offering. 2) Your debt to income ratio is too high, and they are trying to get it down. As it doesn't sound like #2, something doesn't smell right. I suggest reaching out to a 2nd lender for another opinion. I lend for FHA loans, and most other mortgage loans in MN WI IA ND SD. Find me at https://joemetzler.com/fha-loans-mn-wi-ia-nd-sd/ - Cambria Mortgage, NMLS 274132

Sep 12th 2022
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