You are correct.
Beginning January 1, 2009 The Housing and Economic Recovery Act of 2008 revised the National Housing Act to require that the borrower "shall have paid, in cash or its equivalent...and amount equal to not less than 3.5% of the appraised value of the property..."
If you are interested in getting an FHA Loan, I suggest you contact my dedicated representative at American Guardian Home Loans. We, at Crestico Realty, have an established relationship with this Direct FHA Lender and can guarantee the highest caliber of customer service when you work with us and our preferred providers.
His contact information is as follows:
American Guardian Home Loans