Today’s 30-year FHA loan rates
The table below brings together a comprehensive national survey of mortgage lenders to help you know what are the most competitive 30-year mortgage rates. This interest rate table is updated daily to give you the most current rates when choosing a 30-year mortgage loan.
|30-Year Fixed- FHA||3.190%||3.700%|
Rates as of Monday, October 26, 2020 at 6:30 AM
With interest rates at record lows, now is a great time for many people to buy real estate. But, that can be a tricky proposition if you don’t have excellent credit or don’t have enough money in the bank for a large down payment. If that sounds like you, you might want to consider a 30-year FHA mortgage. Here’s what you need to know.
What is a 30-year FHA mortgage?
As the name suggests, a 30-year FHA loan is a 30 year mortgage, but the FHA part is where it differs from a conventional loan. These mortgages are backed by the Federal Housing Administration, which means lenders are protected if you go into default as a borrower. That protection allows lenders to fund mortgages that they might otherwise deem too risky.
How does a 30-year FHA mortgage work?
FHA mortgages have specific requirements tied to them. In order to qualify, here are the conditions you’ll need to meet:
- A minimum credit score of 580, and able to make at least a 3.5% down payment
- If your credit score is 500-579, you can still qualify, but you’ll need to bump that down payment up to 10%
- Debt-to-income ratio under 43%
- Maximum purchase price of $314,515 for a single family home in a low-cost market, or $726,525 in a high-cost on
- Using funds to purchase a primary residence
- Able to prove steady income and employment
You’ll also need to pay a mortgage insurance premium of 0.8 to 1.5 percent, depending on your loan amount. That premium will stay with you for the whole 30-year life of the mortgage unless you refinance into a non-FHA loan.
When should you consider a 30-year FHA mortgage?
If you’re ready to buy a house, but finances are tight or you have a low credit score, an FHA mortgage could be a great fit. Make sure to shop around with lenders, and talk to them about your overall financial situation to figure out what makes the most sense in your situation.