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Home Building Loans With Bad Credit How Much Is A Down Payment How Much of a Down Payment Do YOU Need? – Jagoe Homes – One of the most popular of the Low-Down Payment loans is a Federal Housing Administration (FHA loan), which allows for 3.5 percent down. One of the downfalls of this program, however, is that you still have to pay mortgage insurance premiums to protect the lender if you default on your loan.