FHA loans — those insured by the Federal Housing Administration — come with more flexible financial requirements than conventional loans, making them appealing to first-time homebuyers and others with lower income or credit scores. While the FHA sets eligibility requirements, however, lenders can set tighter qualifications — and loan interest rates can vary significantly.

Bankrate has made shopping for FHA mortgages easier for you by reviewing dozens of mortgage lenders based on several key criteria. Here’s our guide to the best FHA mortgage lenders in 2024.

Bankrate’s picks for best FHA mortgage lenders

FHA mortgage lender Bankrate rating Minimum credit score Minimum down payment
Veterans United Home Loans 4.9/5 Undisclosed for FHA loans 3.5% for FHA loans
Bethpage Federal Credit Union 4.9/5 500 for FHA loans 3.5% for FHA loans
Wells Fargo Home Mortgage 4.8/5 Undisclosed for FHA loans 3.5% for FHA loans
U.S. Bank 4.8/5 Undisclosed for FHA loans 3.5% for FHA loans
Old National Bank 4.6/5 640 for FHA loans Undisclosed

Veterans United Home Loans

Veterans United Home Loans

Learn more in our Bankrate review

Bethpage federal credit union logo

Bethpage Federal Credit Union

Learn more in our Bankrate review

Wells Fargo logo

Wells Fargo Home Mortgage

Learn more in our Bankrate review

US Bank Logo

U.S. Bank

Learn more in our Bankrate review

Old National Bank

Old National Bank

Learn more in our Bankrate review

Qualifications for FHA loans

Here are the basic requirements for an FHA loan. You must:

  • Borrow no more than $498,257 for a one-unit property in most areas; you can find your area’s loan limit here
  • Carry a credit score of at least 580 with a 3.5 percent down payment, or as low as 500 with a 10 percent down payment
  • Have no higher than a 43 percent debt-to-income (DTI) ratio
  • Provide proof of employment from the past two years
  • Wait one year after a Chapter 13 bankruptcy, two years after a Chapter 7 bankruptcy and three years after a foreclosure, if applicable

How to find an FHA mortgage lender

The FHA doesn’t make loans directly; instead, you’ll get an FHA loan from an FHA-approved mortgage lender. Many types of mortgage lenders, including banks and online companies, offer these loans. To find one:

  • Ask your real estate agent. Your agent might know of lenders that offer FHA loans. Just be aware: You are never obligated to work with the lender your agent recommends.
  • Use HUD’s FHA lender search tool. The search function allows you to search for FHA lenders by state, county and zip code.
  • Explore options with an online comparison tool. Bankrate presents customized FHA loan rate quotes based on your needs and financial situation.

Who are the largest FHA lenders in the U.S.?

FHA mortgage lender Loan originations in 2022 Loan volume in 2022
*American Advisors Group (AAG) is a reverse mortgage lender.

Source: Home Mortgage Disclosure Act data, aggregated by LendingPatterns

Rocket Mortgage 73,003 $16.1 billion
United Wholesale Mortgage 47,735 $15.5 billion
LoanDepot 25,288 $7.1 billion
Fairway Independent Mortgage 23,158 $6.2 billion
Caliber Home Loans 20,127 $5.8 billion
CrossCountry Mortgage 20,009 $5.5 billion
Freedom Mortgage 17,217 $4.2 billion
American Advisors Group (AAG)* 15,538 $2.5 billion
DHI Mortgage Company 15,127 $5.1 billion
Pennymac 12,930 $3.1 billion

How we chose the best FHA mortgage lenders

To determine the best FHA mortgage lenders, Bankrate evaluates more than 80 lenders for factors relating to affordability, availability and customer experience, assigning each a Bankrate Score out of five stars. Based on this methodology, the best FHA mortgage lenders generally have a Bankrate Score of 4.6 stars or higher. Note: The Bankrate Score considers a mortgage lender’s products and services only; it is not a reflection of a lender’s internal operations or practices.

FAQs about FHA loans

  • No, FHA loans can be used by both first-time homebuyers and repeat homebuyers. They appeal more to first-timers due to their lower income, credit score and down payment requirements.
  • FHA loans make homeownership more accessible to borrowers with lower credit scores, moderate income or limited savings. These mortgage products come with fixed interest rates, making your monthly mortgage payment more predictable. You could also qualify for a more competitive rate than you would with a conventional loan, even if you have less than perfect credit.