how does an fha loan work 
if you have a credit score of at least 580 you can borrow up to 96 5 of the value of a home with an fha loan that means the required down payment is only 3 5 2if your credit score falls between 500 and 579 you can still get an fha loan but you will need to make a down payment of at least 10 3with fha loans the down payment can come from savings a financial gift from a family member or a grant for down payment assistance the fha doesn t actually lend anyone money to buy a home instead the loan is issued by a bank or other financial institution that is approved by the fha 