FHA loan questions here

[Mack Bailey]

I've been looking at FHA loans to househack a multi-family and had some general questions. Theres a minimum of a 3.5 down payment, could this be higher than 3.5? Say 10% or 20%? If I pay the 3.5 and saved the other 16.5% for reserves could I pay more down later?

[Chris Mason]

Originally posted by @Mack Bailey:

I've been looking at FHA loans to househack a multi-family and had some general questions. Theres a minimum of a 3.5 down payment, could this be higher than 3.5? Say 10% or 20%? If I pay the 3.5 and saved the other 16.5% for reserves could I pay more down later?

Yes. With 10% down FHA's mortgage insurance drops off in a decade instead of being permanent. Yes, you could pay it down later.