FHA down payment requirements for lease option

[Ben Skowronek]

I've heard FHA loans typically require a 3-1/2% down payment. I'm currently in a lease option agreement with my landlord. When I secure an FHA loan, will I need to bring 3-1/2% to the table? Or will the $41,000 paid toward the principle be considered my down payment?

[Ben Skowronek]

Our option to purchase agreement states:

The initial purchase price is $172,000.  This option price will be adjusted and otherwise reduced over time, as set forth herein.

Of the $2245 in rent payable each month during the 36 month lease, $1000 of the $2245 amount will be applied as further consideration to reduce the option and purchase price if and only if the Lessee exercises this option to purchase.

Thanks for all the help - Ben