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FHA loan rates

On Monday, May 29, 2023, the national average 30-year FHA mortgage APR is 7.58%. The average 30-year FHA refinance APR is 7.58%, according to Bankrate's latest survey of the nation's largest mortgage lenders.

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Today’s FHA loan rates

The table below brings together a comprehensive national survey of mortgage lenders to help you know what are the most competitive FHA loan rates. This interest rate table is updated daily to give you the most current rates when choosing an FHA mortgage home loan.

Product Interest Rate APR
30-Year FHA Rate 6.65% 7.58%
30-Year Fixed Rate 7.19% 7.21%
15-Year Fixed Rate 6.61% 6.63%
5/1 ARM Rate 6.00% 6.00%
30-Year VA Rate 6.71% 6.83%

Rates as of Monday, May 29, 2023 at 6:30 AM

How to find and compare FHA interest rates

With Bankrate’s mortgage rate tables, you can receive tailored-to-you quotes from lenders by plugging in your location and basic details about your finances. These can give you a ballpark sense of what a loan might cost you.

To get a formal FHA mortgage offer, you should first decide your preferred loan term. 15-year and 30-year terms are the most common options, but there are other options available as well, such as 10-year loans. A shorter term will likely come with a lower interest rate, therefore reducing your overall expenses throughout the life of the loan, but has the downside of a higher monthly payment.

For a lender to provide you with an accurate quote, you’ll need to indicate your preferred loan term, and you’ll also have to present documents attesting to your income, assets, debts, credit score and payment history.

You can seek offers from a variety of lender institutions and compare offers online. Check Bankrate’s list of best FHA lenders. Be sure to talk with your bank or any other financial institution that you have an existing relationship with, since they may offer special rates or deals to current customers.

 Bankrate’s standard advice to loan-shoppers is: For the best mortgage deal, boost your credit score before you approach lenders. Because FHA loans are specifically designed for borrowers with credit scores below 700, that counsel isn’t as crucial in this case (though strengthening your financial profile never hurts). Still, you should shop around, and garner at least three quotes. Closing costs can differ from one lender to another, so be sure to compare that part of the loan, too.

FHA loan requirements

  • Loan limits: While conforming loans in much of the country top out at $726,200 for 2023, the ceiling for FHA loans is $472,030 (in high-cost areas, both types of loans go up to nearly $1.1 million)
  • Minimum credit score: 500 for a 10 percent down payment, 580 for a 3.5 percent down payment
  • Maximum front-end debt-to-income ratio (amount spent on monthly mortgage payments only): 31 percent
  • Maximum back-end debt-to-income ratio (all monthly debt payments): 43 percent
  • Mortgage insurance premium: Upfront mortgage insurance premium equal to 1.75 percent of your loan amount for most FHA mortgages, in addition to monthly payments
  • Financial history: Steady income and proof of employment

FHA loan limits

Each year, the FHA updates its lending limits, or the maximum amount that the agency will insure for a given area and type of property. These limits are influenced by mortgage market-makers Fannie Mae and Freddie Mac’s conventional loan limits. For 2023, the national ceiling is $1,089,300 in high-cost areas and $472,030 elsewhere.

FHA mortgage insurance

FHA loans require mortgage insurance premiums (MIP) to be paid by homebuyers who put down less than 20 percent. Mortgage insurance costs add a meaningful amount to your monthly payment, so keep these costs in mind when you’re budgeting for a home.

There are two types of premiums: the upfront mortgage insurance premium (1.75 percent of the base loan amount) and an annual mortgage insurance premium (.45 percent to 1.05 percent, depending on the loan term, loan amount and the loan-to-value ratio of the home). The annual premium is owed for the loan’s lifetime, if your down payment is less than 10 percent; if you put down at least 10 percent, however, the premiums can be removed after 11 years.

Pros and cons of FHA loans

Pros

  • Low down-payment requirements
  • Friendly to first-time homebuyers (includes those who have not owned a home for at least three years)
  • Financing for mobile homes and factory-built homes
  • May accommodate people who own the land where the home will be located and those who live in a mobile home park
  • Can lock in a low rate without a large down payment

Cons

Frequently asked questions about FHA loans

 

Written by: Jeff Ostrowski, mortgage reporter for Bankrate

Jeff Ostrowski writes about the U.S. housing market for Bankrate. He has appeared on CNBC and numerous radio and television outlets to discuss his reporting about real estate trends.

Read more from Jeff Ostrowski