Why does my FHA loan require a 20% down?

ask your lender / loan officer ......FHA loans allow as little as a 3.5% down payment so if you can qualify for a higher amount and need to make a lower down payment - you should be allowed to do so ...2) consider using a conventional loan as the pricing will be similar plus you can avoid costly FHA mtg ins fees and also the costly mortgage insurance

Normally you would not...that also does not avoid mortgage insurance with FHA. Min allowed is 3.5%. More info would be needed to determine why. Feel free to reach out to me at 562.261.5500

Two things come to my mind. 1) It isn't an FHA loan they are offering. 2) Your debt to income ratio is too high, and they are trying to get it down. As it doesn't sound like #2, something doesn't smell right. I suggest reaching out to a 2nd lender for another opinion. I lend for FHA loans, and most other mortgage loans in MN WI IA ND SD. Find me at https://joemetzler.com/fha-loans-mn-wi-ia-nd-sd/ - Cambria Mortgage, NMLS 274132