Question of the Day

For people with low credit scores, what is the minimum down payment needed to receive a mortgage backed by federal taxpayers in the event of a loan default?

Correct Answer

Tell Me More

People who cannot qualify for a conventional mortgage because of poor credit history can receive a taxpayer-backed mortgage from the Federal Housing Administration with a 3.5% down payment. However, the borrowers must purchase mortgage insurance, which partially limits the risk to taxpayers.

DocumentationFHA Loans 2014 CBO Report