FHA Interest Rates: Compare Current Rates and Best Lenders
Compare FHA loan rate offers and save thousands. No impact to your credit score.
Current FHA interest rates
| Loan product | Interest rate | APR |
|---|---|---|
| 30-year fixed rate FHA mortgage | 6.14% | 6.79% |
| 30-year fixed rate FHA refinance | 5.90% | 6.55% |
Average rates disclaimer
- Choose your loan purpose. You can get FHA loan rates for a home purchase or refinance.
- Enter your home’s value. If you’re buying, pick a price that fits your budget. You can use an online value estimator if you’re refinancing.
- Enter your down payment (or mortgage balance). FHA loans only require a 3.5% down payment, but you can pay more if you have extra funds. If you’re refinancing, enter your mortgage balance instead.
- Choose your property use. You can only buy or refinance a primary home (the one you live in) with an FHA loan.
- Select your credit score range. The higher your credit score, the lower your interest rate will be.
- Enter your ZIP code. Adding this info will match you with lenders that offer FHA loan rates in your area.
What is an FHA loan?
An FHA loan is a type of mortgage insured by the Federal Housing Administration (FHA). These loans cater to borrowers with less-than-perfect credit and allow you to buy a house with a down payment as low as 3.5%. FHA loan guidelines are more lenient, so borrowers who can’t qualify for a conventional loan can still have a shot at homeownership.
Only FHA-approved lenders can offer you an FHA loan, which is important to know when shopping for a lender.
What’s happening with FHA loan rates today?
National average interest rates will likely hold relatively steady through the rest of 2026, and may end the year around 6.30%.
Mortgage interest rates have been a bit volatile this year, with more than a percentage point spread between their lowest (5.98%) and highest (7.04%) points. FHA loan rates are typically slightly lower than — but move in tandem with — 30-year loan rates as a whole, and so far this year peaked at 6.32%. The lowest national average FHA loan rate this year was 5.84%, in early March.
For now, homebuyers shouldn’t expect any major rate drops that would significantly affect affordability. The housing market continues to be expensive, with the median home price sitting at $403,200 as of Q1 2026. Market experts also no longer anticipate the Federal Reserve making multiple rate cuts, and many think the Fed could hold off on making any cuts for the rest of the year.
Mortgage Rate Trends
Rate trend chart
Rate summary
| Loan Type | Avg. APR | 3 Month Diff. |
|---|---|---|
| 30 Year Fixed | 6.68% | 0.53% |
| 15 Year Fixed | 6.06% | 0.45% |
| 5/1 ARM | 6.37% | 0.15% |
The best FHA loan lenders of 2026
Best FHA loan lender overall: Pennymac
- Several FHA loan options
- Higher debt-to-income (DTI) ratio maximum allowance than usual for FHA loans
- Competitive loan costs
- Doesn’t allow you to view rate information without giving personal information
- Doesn’t publish origination fees online
- Limited number of in-person locations
We chose Pennymac as the best FHA loan lender because they have easier requirements, lower loan costs than other top FHA lenders, and three of the four popular FHA programs.
Pennymac allows FHA borrowers to have higher LTV ratios than most other top lenders and does not raise its credit score and down payment minimums above normal FHA qualifications. The lender offers three of the four popular FHA loan programs: purchase, streamline refinance and cash-out refinance. The only popular FHA loan Pennymac doesn’t offer is an FHA 203(k) loan, a type of FHA loan used for construction.
Pennymac disappointingly doesn’t share FHA loan rate information on its website unless you’re willing to give up some of your personal information
Pennymac is a large mortgage lender based in California, offering home loans in all 50 states and some U.S. territories.
Available FHA loan programs:
- Purchase
- Streamline refinance
- Cash-out refinance
Additional loan programs:
- Conventional
- FHA
- VA
- USDA
- Jumbo
- Home equity loans, investment property loans
You’ll have the best chance of qualifying for a mortgage with Pennymac if you have:
- LTV ratio of 78% or better
- DTI ratio below 43%
Pennymac doesn’t share the exact minimum requirements it uses to approve applications, but most of its customers met these qualifications, according to nationwide data from 2024.
Best FHA lender for online experience: Flagstar Bank
- Helpful collection of online rates, product guides, and application resources
- Offers in-person and online services
- Wide variety of loan FHA products available, including FHA 203(h) disaster loans
- Doesn’t service its own loans
- Loan costs that run higher than competitors
- Few branches outside of select states
We chose Flagstar Bank as the best FHA loan lender for an online experience because they provide many helpful online resources, including rates, product guides and loan applications.
Flagstar Bank provides a stellar online experience, with rates you can view online without having to divulge personal information, helpful product information and resources about mortgage lending on its website. And if you’re hoping for the option to visit a brick-and-mortar location, you may be in luck: Flagstar operates branches in a handful of states across the country.
Flagstar issues home loans in all 50 states.
Available FHA loan programs:
- Purchase (fixed-rate and adjustable-rate)
- 203(k) rehab construction
Additional loan programs:
- Conventional
- VA
- USDA
- Home equity lines of credit (HELOCs)
- Jumbo
You’ll have the best chance of qualifying for a mortgage with Flagstar if you have:
- LTV ratio of 77% or better
- DTI ratio below 40%
Flagstar doesn’t share the exact minimum requirements it uses to approve applications, but most customers met these qualifications, according to nationwide data from 2024.
Best FHA lender for first-time homebuyers: AmeriSave Mortgage
- Offers discounts and programs tailored to the needs of first-time homebuyers and low-income borrowers
- A robust digital platform
- A wide variety of FHA mortgage products
- Above-average loan costs
- Limited rate and fee information on their website
- Online only (no in-person locations)
We chose AmeriSave Mortgage as the overall best FHA loan lender for first-time homebuyers because they offer information and loan programs tailored to the needs of first-time and low-income borrowers.
AmeriSave specializes in digital mortgages and offers a strong online experience, including an online application. The company provides a robust suite of FHA loan programs and other low-down-payment and low-credit options.
AmeriSave Mortgage is based in Georgia and lends to borrowers in 49 states (New York excluded) and the District of Columbia.
Available FHA loan programs:
- Purchase
- Streamline refinance
- Cash-out refinance
Additional loan programs:
- Conventional
- VA
- USDA
- Home equity lines of credit (HELOCs)
- Jumbo
- home equity loans
You’ll have the best chance of qualifying for a home loan with AmeriSave Mortgage if you have:
- LTV ratio of 63% or better
- DTI ratio below 40%
AmeriSave doesn’t share the exact minimum requirements it uses to approve applications, but most customers met these qualifications, according to nationwide data from 2024.
Best for FHA 203(k) reno loans: Fairway Independent Mortgage
- Strong selection of FHA loan programs, including standard and limited 203(k) loans
- Low loan denial rates
- Offers down payment assistance to qualifying first-time homebuyers in designated areas
- Doesn’t disclose rates or fees on its website
- Above-average loan costs and fees
- Limited loan options if you’re looking to tap home equity
We chose Fairway as the best lender for FHA 203(k) renovation loans because it offers both standard and limited 203(k) loans, plus a strong array of other FHA loan types, a low loan denial rate and a large network of brick-and-mortar locations.
Fairway offers both types of FHA 203(k) loans: standard, for structural renovations or projects costing more than $35,000 and limited, for non-structural improvements up to $35,000. That’s on top of a strong array of FHA purchase and refinance loans.
And, although a handful of other lenders in our pool also offer FHA 203(k) loans, Fairway has the added benefit of both online mortgage services and a large network of branches. This caters to borrowers who value in-person service, as well as convenience.
You’ll also have a great chance of approval, as Fairway boasts one of the lowest denial rates we saw among major lenders: 5.7%.
Fairway is a large mortgage lender based in Madison, Wis., and Carrollton, Texas. It issues mortgage loans in all 50 states and the District of Columbia.
Available FHA loan programs:
- FHA standard 203(k)
- FHA limited 203(k)
- FHA purchase (fixed-rate and adjustable-rate)
- FHA streamline refinance
Additional loan programs:
- Conventional
- VA
- USDA
- Jumbo
You’ll have the best chance of qualifying for a mortgage with Fairway if you have:
- LTV ratio of 86% or better
- DTI ratio below 40%
Fairway doesn’t share the exact minimum requirements it uses to approve applications, but most of its customers met these qualifications, according to nationwide data from 2024.
Best FHA lender for bad credit: Carrington Mortgage Services
- Lowest minimum credit requirement allowed by the U.S. Department of Housing and Urban Development for FHA loan programs
- Provides a streamlined, 100% online process
- Offers loan options for those who can’t qualify for government-backed or conventional loans
- Doesn’t publish mortgage rates on its website
- Doesn’t offer home equity loans or HELOCs
- High loan costs and fees
We chose Carrington Mortgage Services as the best FHA lender for bad credit loans because they offer FHA home loans to borrowers with the lowest allowable credit scores: 500.
That’s lower than some other FHA lenders we reviewed, though it isn’t totally unique. Still, it shows that Carrington specializes in helping borrowers who could be left behind by more traditional lenders. And they also offer flexible loan options tailored to borrowers with low or damaged credit, income documentation issues, or other financial issues that can stop them from qualifying for traditional home loans.
If you’re looking for a lender that’s willing to take a chance on borrowers with low credit scores or other blemishes in their financial profile, Carrington could be a great choice for you.
Carrington Mortgage Services is based in California and services loans in all 50 states, with licenses to lend in 49 states.
Available FHA loan programs:
- Purchase
- Refinance
- Streamline refinance
Additional loan programs:
- Conventional
- VA
- USDA
- Jumbo
You’ll have the best chance of qualifying for a home loan with Carrington Mortgage Services if you have:
- LTV ratio of 75% or better
- DTI ratio below 43%
Carrington doesn’t share the exact minimum requirements it uses to approve applications, but most customers met these qualifications, according to nationwide data from 2024.
Are FHA interest rates lower than conventional rates?
Yes, FHA interest rates are typically lower; however, that doesn’t always mean that FHA loans are cheaper. To understand why, you’ll need to pay attention to each loan’s annual percentage rate (APR). Unlike an interest rate, which only measures the cost to borrow money, an APR captures all of the costs you’ll pay when taking out a loan.
FHA loans often have higher APRs than comparable conventional loans because they require you to pay for FHA mortgage insurance. That can push up your total loan costs by quite a bit.
If you’d like to estimate the monthly payment on an FHA loan, try our FHA loan calculator.
The exact amount you’ll pay in mortgage insurance premiums will vary based on your loan amount, loan term and loan type. For example, an FHA borrower with a $300,000 purchase loan can expect to pay $5,250 in upfront fees, and between $450 and $2,250 in annual premiums for the life of the loan.
How to get the lowest FHA mortgage rates today
Shop around
Apply for loans and compare loan estimates from at least three to five different FHA-approved lenders. In addition to interest rates, focus on each lender’s closing costs, since these can be a significant expense. A lower interest rate may come with higher costs, so make sure you have extra cash to cover these fees.
Choose a shorter term
If you can afford a higher monthly payment, your FHA loan rate will be lower with a shorter term, like a 15-year fixed-rate mortgage instead of the more common 30-year fixed-rate mortgage. You’ll also save thousands of dollars in interest over the life of the loan by going with a 15-year loan instead of a 30-year loan.
Ask the seller to buy mortgage points
Paying for mortgage points buys you a lower interest rate. One full point costs 1% of your loan amount and usually reduces your rate by up to 0.25 percentage points. You can ask the seller to pay up to 6% of your home price toward closing costs (including mortgage points) to get a lower FHA interest rate. You may also be able to deduct the cost of the points when you file your taxes.
Boost your credit scores
Although the FHA doesn’t require a high credit score to approve you for a loan, a higher credit score can get you a lower FHA interest rate. Most FHA loan borrowers have a score between 640 and 679. If your score is significantly lower, you can improve it by paying bills on time and keeping each of your credit card balances below 30% of your available credit.
How do I find FHA lenders to compare rates?
LendingTree’s list of the best FHA mortgage lenders is a great place to start. You can also compare rate offers on LendingTree by taking a couple of minutes to fill out our form. Asking for a referral from a friend, relative or a real estate agent is another way to hunt down the best lender for you.
If you’re not sure if a lender provides FHA loans, you can look up FHA-approved lenders online through the U.S. Department of Housing and Urban Development’s lender list search tool.
FHA interest rates by credit score
FHA loan rates change day to day, but the table below should give you an idea of how your credit score may affect the FHA loan rates you’re offered. We’ve calculated the premium (↑) or discount (↓) you’ll pay versus average FHA and conventional loan rates.
| Description | Credit score | FHA interest rate | Vs. average FHA rate | Vs. comparable conventional loan rate |
|---|---|---|---|---|
| Above-average credit scores for an FHA loan borrower | 800+ | 5.88% | -0.50%↓ | -0.84%↓ |
| 780-799 | 6.00% | -0.38%↓ | -0.74%↓ | |
| 760-779 | 6.16% | -0.22%↓ | -0.65%↓ | |
| 740-759 | 6.05% | -0.33%↓ | -0.85%↓ | |
| 720-739 | 6.11% | -0.27%↓ | -0.90%↓ | |
| 700-719 | 6.26% | -0.12%↓ | -0.82%↓ | |
| 680-699 | 6.30% | -0.08%↓ | -1.00%↓ | |
| Average scores for an FHA loan borrower | 660-679 | 6.38% | 0.00% | -0.87%↓ |
| 640-659 | 6.37% | -0.01%↓ | -0.96%↓ | |
| Below-average scores for an FHA loan borrower | 620-639 | 6.55% | 0.17% ↑ | -0.91%↓ |
| 500-619 | 6.62% | 0.24% ↑ | -0.93%↓ |
As you can see, your credit score can greatly affect the rate you’ll pay on an FHA loan. The higher your score, the more you stand to save. However, even borrowers with below-average scores can expect interest savings by going with an FHA loan instead of a comparable conventional loan.
For the most up-to-date FHA rates, jump back to the top of this page or gather lender quotes online.
Pros and cons of FHA loans
Pros
-
Lower interest rates
You’ll likely find that FHA loan rates are lower than rates on conventional loans. -
Lower credit score minimum
You can qualify with a credit score as low as 500. -
Small down payment requirement
You can qualify with as little as 3.5% down. -
Less paperwork
You may qualify for FHA streamline refinance options that don’t require income verification or a home appraisal.
Cons
-
Higher total costs
Your APR may be higher compared to a similar conventional loan, due to FHA mortgage insurance. -
Higher monthly payments
Your monthly payment may be higher — even if your rate is lower — due to mortgage insurance charges. -
Higher risk
You may end up with a higher-priced mortgage loan, which is more likely to become unaffordable over time.
How to qualify for an FHA loan
FHA loans are typically easier to qualify for than conventional loans — especially when it comes to credit scores and debt-to-income (DTI) ratios. However, they do come with a few unique requirements, including loan limits.
Most FHA loan borrowers have a credit score between 640 and 679 and a 45% DTI.
Read our FHA loans page for detailed FHA loan requirement info.
Frequently asked questions
Yes, you can get an FHA loan on a manufactured home — as long as it was built after 1976 and meets other FHA guidelines. The FHA offers two loan programs for manufactured homes, known as Title I and Title II loans.
You may not qualify for an FHA loan if you have a credit score below 500, you’re carrying too much debt already or you can’t save at least a 3.5% down payment. You’ll also need to meet several FHA requirements related to your financial picture, employment history and the home you want to buy.
Yes. A variety of FHA adjustable-rate mortgages (ARMs) are available with introductory fixed-rate periods of one, three, five, seven or 10 years. Once the initial fixed-rate period ends, the rate will adjust, meaning your monthly payment will likely fluctuate for the remainder of the loan term.
If you can’t qualify for a conventional loan because your credit score is too low, it makes sense to look into an FHA loan. However, if you can avoid expensive FHA mortgage insurance, you likely should consider a conventional loan.
There are many low-down-payment loan programs available to conventional borrowers, especially if you’re a first-time homebuyer. You can also look into down payment assistance programs.
FHA mortgage insurance is mandatory for the life of an FHA loan with a 3.5% down payment. With at least a 10% down payment, you’ll pay the premiums for 11 years. To get rid of these payments sooner, you can refinance to a conventional mortgage.
How LendingTree chose the best FHA lenders
We reviewed more than 40 lenders to determine our picks for the best FHA lenders. LendingTree reviews and fact-checks our top lender picks annually by gathering loan program and requirement details directly from lenders and analyzing data from the Home Mortgage Disclosure Act (HMDA) government database.
We review several factors: digital application availability and ease of use, product and lending information accessibility, in-person branch footprint and LendingTree’s expert star rating.
LendingTree best lender criteria
To be considered as a potential best lender pick by LendingTree experts, the lender must provide users with an online loan application experience that is relatively easy to follow and complete.
This means the lender must provide a user-friendly website and make their customer service contact information easy to find online.
To qualify for “best lender” consideration by LendingTree experts, the lender must provide users with an online experience that helps borrowers make sense of the mortgage lending process.
This means the lender must provide free, online learning materials to help homebuyers understand the lender’s offered products, basic loan qualification requirements and high-level rates information.
Lenders must offer mortgages in at least 35 states across the U.S. to be considered a best lender pick. This allows a wider range of users to potentially choose the lender for their home loan, improving accessibility when customers need to contact the lender or get a rate quote.
For lenders to qualify for consideration as a best lender pick, they must have at least a four-star lender review rating from LendingTree experts. This rating indicates that the lender meets most — if not all — of the five criteria considered when assigning ratings. Here is the LendingTree star rating system for this year:
- Publishes rates online (+1 star)
- Offers standard mortgage products (+1 star)
- Includes detailed product info online (+1 star)
- Shares resources about mortgage lending (+1 star)
- Provides an online application (+1 star)
LendingTree mortgage experts’ process for choosing the best lenders
LendingTree gathers data directly from lenders through their websites, disclosures and, in some cases, direct communication with company representatives. The LendingTree editorial team verifies and updates information periodically. Lenders that clearly present product details and terms are viewed more favorably in our evaluation.
Our editorial team applies consistent criteria to every lender. Lenders cannot pay to influence our ratings. Read LendingTree’s editorial guidelines for more information.
Why trust LendingTree’s methodology?
As the lead editor for all purchase, refinance and home equity content, I rely on my 14+ years of personal finance experience to manage a team of staff writers and contributors who create consumer-friendly guides.
Together, our team aims to make LendingTree a reliable and helpful resource for readers as they navigate the complex mortgage lending process.
