Shop around. Your best bet for getting the lowest FHA interest rates is to compare the loan estimates of at least three to five different FHA-approved lenders. Compare each lender’s closing costs, too. A lower rate with high costs may not be the best deal if you don’t have the extra cash to cover the fees.
Boost your credit scores. The higher your credit score, the lower your FHA interest rate will be. You can improve your credit score by paying bills on time and capping monthly credit charges to 30% of your account limits.
Ask the seller to buy discount points. One full discount point equals 1% of your loan amount, and paying points typically buys you a lower interest rate. You can ask the seller to pay up to 6% of the price of your home toward closing costs, including discount points, to get a lower FHA interest rate.