FHA Mortgage Rates: Today's Best Rates
Current FHA loan rates updated daily. Government-insured mortgages with low down payments starting at 3.5% — ideal for first-time buyers and borrowers with lower credit scores.
What Is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration, a division of the U.S. Department of Housing and Urban Development (HUD). Because the government insures the loan against default, lenders can offer more flexible qualification requirements — including lower credit scores and smaller down payments than conventional mortgages.
Today's FHA rate is 6.09%, compared to 6.33% for a conventional 30-year fixed. FHA rates are often competitive with or slightly below conventional rates.
FHA Loan Requirements at a Glance
FHA vs. Conventional: Which Is Better?
FHA loans are designed for borrowers who may not qualify for conventional financing. If your credit score is below 700, your savings are limited, or you're buying your first home, an FHA loan could be the best path to homeownership. However, FHA loans require mortgage insurance for the life of the loan (unless you refinance to conventional later).
Pros and Cons of FHA Loans
Advantages
- Down payment as low as 3.5%
- Credit scores as low as 580 (or 500 with 10% down)
- Competitive interest rates
- Gift funds allowed for entire down payment
- Seller can contribute up to 6% toward closing costs
- Available for purchases and refinances
Considerations
- Mortgage insurance premium (MIP) required
- Upfront MIP of 1.75% of loan amount
- Annual MIP for life of loan (with <10% down)
- FHA loan limits vary by county
- Property must meet FHA appraisal standards
- Primary residence only — no investment properties
FHA Mortgage Insurance Explained
FHA loans require two types of mortgage insurance: an upfront premium (UFMIP) of 1.75% of the loan amount (usually rolled into the loan) and an annual premium of 0.55% paid monthly. On a $300,000 loan, that's $5,250 upfront and about $138/month. Unlike conventional PMI, FHA MIP doesn't automatically cancel — you'll need to refinance to a conventional loan to remove it.
How to Get the Best FHA Rate
While FHA loans are more accessible, you can still improve your rate by boosting your credit score above 680, making a larger down payment (even 5-10% helps), keeping your DTI ratio low, and comparing offers from 3-5 FHA-approved lenders. Even small rate differences compound significantly over 30 years.
FHA Loan FAQ
Today's FHA mortgage rate is 6.09% from Optimal Blue daily data. Your actual rate depends on credit score, down payment, lender, and loan amount.
You need a minimum 580 credit score for the 3.5% down payment option. Scores between 500-579 require 10% down. Most lenders prefer 620+ for the best rates and easier approval.
FHA requires an upfront premium of 1.75% of the loan amount (usually rolled into the loan) plus an annual premium of 0.55% paid monthly. On a $300,000 loan, that's about $5,250 upfront and $138/month.
If you put less than 10% down, MIP lasts for the life of the loan. The only way to remove it is to refinance into a conventional loan once you have 20% equity. With 10%+ down, MIP drops off after 11 years.
FHA rates are often similar to or slightly below conventional rates. Today's FHA rate is 6.09% vs. 6.33% for conventional. However, total cost may be higher due to mandatory mortgage insurance.
For 2025, the FHA floor limit is $524,225 for most areas and the ceiling is $1,209,750 for high-cost counties. Limits vary by county — check HUD's website for your area's specific limit.
No. While FHA loans are popular with first-time buyers, any borrower can use them for a primary residence. You can even use FHA for a second home purchase if you've outgrown your current one, though you can only have one FHA loan at a time in most cases.