Your closing costs and down payment are two separate things. A down payment is a deposit toward your equity in the home — it's your initial slice of ownership in the property. Closing costs, on the other hand, represent fees you pay to secure financing and make sure the home is titled in your name.
It's important to factor in both FHA loan closing costs and down payment requirements when considering what you'll pay on closing day. Most homebuyers need to put down at least 3.5% for an FHA down payment on top of the 2%–4% in closing costs. For that $300,000 home, that brings your potential closing-day cash to between $16,500 and $22,500 on average.