Zero down payment loans are now requiring 3% down. FHA is becoming an answer and is designed to offer home ownership opportunities to borrowers with less than perfect credit but who lack the ability to make a larger down payment on a home. It provides an option for those who wish to invest their savings in assets other than their home.

FHA type of financing is popular among both first time home buyers and experienced home buyers and you can use 3% down payment rule for a purchase or a refinance. The fixed rate loan is also available for construction and home improvement of an owner occupied primary residence.

While you are required to make a 3% down payment this satisfies a rule of having 3% in the transaction. These funds may come from your own funds, a gift from a relative, grant, or sale of assets you own.