A. The minimum down payment for an FHA 203K loan is 3.5% of the total project cost, which means the combined amount of the home’s purchase price plus the planned renovation budget (and any required reserves/fees) must be used as the base for calculating that 3.5%.

A.  No, the FHA 203K loan uses the same minimum 3.5% down payment requirement (for borrowers with credit scores of 580 or higher) as a standard FHA purchase loan. The difference lies in how the base is calculated (purchase price + repairs).

A.  For a FHA 203K loan, your down payment calculation is based on the “total project amount”, that includes the contract sale price, the repair/rehab/renovation amount, and any required reserves or allowable fees (consultant fees, inspection/title costs). The 3.5% minimum is applied to that combined total.

A.  Yes,  you can use approved gift funds (from family members, employers, certain nonprofits) toward your down payment for an FHA 203K loan, provided the funds meet FHA documentation rules and lender approval.

A.  Yes, the planned renovation cost is added to the purchase price to form the base for the down payment calculation. So, higher repair/rehab budgets mean a larger base, meaning the absolute dollar amount of your 3.5% will be higher.

A.  No, the down payment portion cannot be financed or rolled into the loan. The borrower (or approved gift funds) must provide the minimum down payment up front, even though the renovation and related costs can be financed via the FHA 203K loan.

A.  Both the Standard and Limited versions of the FHA 203K require the same minimum down payment percentage (3.5%) for credit scores of 580+. The difference is that Standard is for major structural work and typically higher renovation costs. The Limited 203K (aka streamline) is for smaller, non-structural improvements.

A.  No, the down payment is your investment (minimum 3.5% of the combined purchase + renovation cost). Closing costs are separate fees related to the loan process (e.g., origination, title, appraisal) which may be paid by you, seller credits, or lender assistance, but they do not replace or reduce the required down payment.

A.  When calculating your down payment for a FHA 203K:

•  You start with the home’s contract sale price.
• Add the repair/rehab/renovation amount you’ve planned plus any necessary contingency/reserves and allowable improvement-fees.
• That combined total is what you apply the 3.5% down payment against.

A . The minimum percentage is the same (3.5% for borrowers with at least a 580 credit score), but the difference lies in the “base” for the calculation. For a standard FHA 203(b) loan it’s only the purchase price; for a FHA 203K loan it’s purchase price plus the renovation cost — so the dollar amount of the required down payment is likely higher.

A.  No, unlike a basic FHA purchase loan, the down payment for a FHA 203K loan is calculated on the combined sum of purchase price and planned renovation/repair costs (plus any required reserves). So you *don’t* simply put 3.5% down of the home’s price alone.