Federal Housing Administration loans were created to encourage and help first-time homebuyers as the downpayment for these mortgages backed by the FHA can be as low as 3.5 percent.A traditional mortgage typically requires a downpayment of 20 percent, which can be a hurdle for potential homeowners to save, especially when they are already facing credit card and student loan debt.Credit scoresA homeowner’s credit score is the largest factor in determining the amount of a downpayment for an FHA loan.