Under most FHA programs, the borrower is required to make a minimum down payment into the transaction of at least 3.5 percent of the lesser of the appraised value of the property or the sales price.

Additionally, the borrower must have sufficient funds to cover borrower-paid closing costs and fees at the time of settlement. Such funds used to cover the required minimum down payment, as well as closing costs and fees, must come from acceptable sources and must be verified and properly documented.

References: For more information on

• the required minimum down payment, see HUD 4155.1 2.A.2.c
• settlement requirements, see HUD 4155.1 5.A, and
• acceptable sources of borrower funds, see HUD 4155.1 5.B.1.b.

The table below lists the acceptable sources of borrower funds and a reference for locating additional information on the various types of funds.