The present invention is directed to a compression latch with a folding handle for selectively holding a door closed. The latch includes a housing with a cup portion for receiving the handle in the folded down position such that the projection of the latch handle above the exterior surface of the door is minimized in the folded-down position. The handle functions to move a pawl in a combination of rotational and linear translational movements as the pawl is moved between latched and unlatched positions.