FHA loan rates

By Dhara Singh

On , the national average 30-year FHA mortgage APR is 4.000%. The average 30-year FHA refinance APR is 4.020%, 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 3.160% 4.000%
30-Year Fixed Rate 3.680% 3.730%
20-Year Fixed Rate 3.540% 3.590%
15-Year Fixed Rate 3.020% 3.140%
10/1 ARM Rate 3.180% 4.040%
7/1 ARM Rate 2.950% 3.980%
5/1 ARM Rate 2.790% 4.070%
30-Year VA Rate 3.180% 3.310%
30-Year Fixed Jumbo Rate 3.670% 3.740%
15-Year Fixed Jumbo Rate 3.060% 3.110%
7/1 ARM Jumbo Rate 2.960% 3.990%
5/1 ARM Jumbo Rate 2.740% 4.040%

at 6:30 AM

Top 5 Bankrate FHA lenders

  • Cardinal Financial Company – Best for low-credit score borrowers
  • LowRates.com – Best overall
  • Cherry Creek Mortgage – Best for first-time homebuyers
  • Renasant Bank – Best bank lender
  • Garden State Home Loans – Best online lender


Bankrate helps thousands of borrowers find mortgage and refinance lenders every day. To determine the top mortgage lenders, we analyzed proprietary data across more than 150 lenders to assess which on our platform received the most inquiries within a three-month period. We then assigned superlatives based on factors such as fees, products offered, convenience and other criteria. These top lenders are updated regularly.

Cardinal Financial Company – Best for low-credit score borrowers

Cardinal Financial Company, which also runs Sebonic Financial, is a mortgage lender available across the U.S., offering an array of loan products including FHA loans.

Strengths: Like many mortgage lenders, Cardinal Financial Company offers FHA loans to borrowers with lower credit scores (as low as 550 or 580), as well as other types of loans with some credit flexibility (620 for a conventional loan, 550 for a VA loan and 580 for a USDA loan). One key benefit: The lender’s proprietary system, Octane, guides borrowers throughout the home loan process with a customized to-do list.

Weaknesses: While you can easily learn Cardinal Financial’s credit and down payment requirements for specific products online, you won’t be able to find information regarding interest rates or fees. To receive a quote and cost details, you’ll need to contact a loan officer.

Read Bankrate's Cardinal Financial Company mortgage review

LowRates.com – Best overall

LowRates.com, operated by Sun West Mortgage Company, is a widely available online lender, with licenses in 48 states, Puerto Rico and the U.S. Virgin Islands.

Strengths: Sun West Mortgage Company has an A+ rating with the Better Business Bureau. In line with other lenders, LowRates.com can do FHA loans for borrowers with a credit score as low as 500. In addition, the lender typically closes loans in 20 days.

Weaknesses: The lender isn’t licensed in Georgia or Massachusetts.

Read Bankrate's LowRates.com mortgage review

Cherry Creek Mortgage – Best for first-time homebuyers

Cherry Creek Mortgage, which also does business as Blue Spot Home Loans and under a few other names, lends mortgages in 33 states.

Strengths: Cherry Creek Mortgage offers several low-down payment loan programs, including Conventional 97 and HomeReady loans and FHA, VA and USDA loans. The lender’s website includes educational resources for first-time homebuyers, including a free downloadable guide to homeownership.

Weaknesses: Cherry Creek Mortgage isn’t available in every state, and for FHA loans, it requires a minimum 620 credit score, which is higher than what some other lenders will accept.

Read Bankrate's Cherry Creek Mortgage review

Renasant Bank – Best bank lender

Renasant Bank is a bank and lender with branches in Alabama, Florida, Georgia, Mississippi and Tennessee.

Strengths: As with other mortgage lenders, Renasant Bank allows you to lock in a competitive rate for up to 60 days. Because it’s a regional bank, Renasant has more of a local feel, which can enhance the borrower’s experience. The bank also offers Community Home Improvement loans, which could be useful if you’re looking to make repairs to your home.

Weaknesses: Renasant Bank is only available in certain states, and doesn’t offer interest rate information online.

Read Bankrate's Renasant Bank mortgage review

Garden State Home Loans – Best online lender

Garden State Home Loans is a smaller online lender with one brick-and-mortar location in New Jersey. The lender offers the basic slate of mortgage products, including FHA loans.

Strengths: You can inquire about Garden State Home Loans’ products and interest rates in seconds online using a convenient chat feature, and the lender charges no hidden fees. Bonus: Its average loan turnaround time is approximately three weeks.

Weaknesses: Garden State Home Loans isn’t available in all states; it only does business in Connecticut, Delaware, Florida, Maryland, Michigan, New Jersey, New York and Pennsylvania.

Garden State Home Loans review

What is an FHA loan?

Federal Housing Administration (FHA) loans are government-backed mortgages for single-family and multifamily homes.

FHA-backed loans typically have lower income and credit score requirements than conventional mortgages. FHA loans also only require a minimum 3.5 percent down payment, which is helpful for buyers who don’t have a lot of funds saved for a big lump sum payment. These are two reasons FHA loans are so popular among first-time homebuyers, people on tight budgets and folks who have lower credit scores.

FHA loans do require FHA mortgage insurance for homebuyers who put down less than 20 percent. All FHA borrowers must pay two insurance premiums: the upfront mortgage insurance premium (1.75 percent of the base loan amount) and an annual mortgage insurance premium. The annual premium is based on loan terms, loan amount and the loan-to-value ratio. Keep these extra costs in mind when you’re budgeting for a home.

Who is an FHA loan for?

An FHA loan can be a viable path to homeownership for many types of buyers. Here we’ll look at two scenarios where FHA loans might make sense.

Borrowers with a sub-620 credit score

Most lenders call for a minimum credit score of 620 for conventional loans, whereas FHA loans have looser requirements. Homebuyers can have a score as low as 500 and still be eligible for an FHA loan. However, lower scores also mean higher down payments. Here’s what FHA requires:

  • 580 credit score to qualify for a 3.5 percent down payment
  • 500 to 579 credit score must have a minimum 10 percent down payment

One caveat: Since the coronavirus pandemic began, FHA lenders have proven less willing to approve loans for borrowers with the lowest credit scores.

Borrowers with a low down payment

Many of today’s buyers, especially when purchasing their first home, find saving for a down payment challenging. As housing costs rise and people are saddled with student loan debt, many folks need a loan with low down payment requirements.

FHA loans require only 3.5 percent down (if you have a minimum 580 credit score). This is good news for folks who would otherwise be required to make a larger upfront payment.

FHA loan requirements

FHA loans vary by loan term, rate type and use:

  • 30- or 15-year term
  • Fixed- or adjustable-rate
  • Purchase, rehab or refinance

An FHA loan can be used to buy or fix up a property or refinance an existing mortgage. You can obtain a loan for either a 15-year or 30-year term. While a 15-year loan allows you to pay off your mortgage off sooner and comes with a lower interest rate, you’ll make higher monthly payments. A 30-year loan, on the other hand, has a higher interest rate but lower monthly payments spread out over a longer term.

FHA loans can also differ in terms of how the interest rate is structured. With a fixed-rate FHA loan, the interest rate stays the same for the duration of the repayment period (unless you refinance later to a lower rate). With an FHA adjustable-rate mortgage (ARM), the interest rate can increase or decrease after a certain period of time and at predetermined intervals. This type of loan generally comes with a lower interest rate upfront.

FHA loan requirements

  1. Steady employment history
  2. Ability to pay
  3. Financial soundness
  4. Residency

Do FHA loans have lower interest rates?

FHA loans do not typically have lower rates overall compared to conventional loans, although you might see lower interest rates advertised. For example, you might see a lower interest rate on an FHA loan compared to the interest rate on a conventional loan, but the FHA loan’s annual percentage rate, or APR, is higher. APR includes all of the fees associated with the loan.

FHA loan vs. 30-year fixed loan

See the table below for an example of the costs associated with an FHA loan versus a 30-year fixed loan. Keep in mind, interest rates are dependent on the market and the borrower's creditworthiness.

FHA Loan 30-Year Fixed Loan
House price $300,000 $300,000
Loan amount $294,750 $289,500
Interest rate 2.91% 3.07%
Principal + interest $1,228 $1,231
Mortgage insurance $205 $121
Total monthly payment $1,433 $1,352
FHA loan has 1.75 percent upfront premium added to loan amount. Rates based on April 2021 rates.

As you dive deeper into the homebuying process, it’s important to weigh the pros and cons of each loan option. Here are the pros and cons of FHA loans.

Advantages of FHA loans

  • 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

Disadvantages of FHA loans

  • Borrower required to pay two types of mortgage insurance: upfront mortgage insurance premium (MIP) and an annual premium
  • Require that the house meet certain standards, which decreases buying options

Best FHA mortgage lenders

The majority of mortgage lenders offer FHA loans. Here are some of the best FHA mortgage lenders today:

For more information on FHA loans:

Written by: Dhara Singh, mortgage reporter for Bankrate

Dhara Singh is a mortgage reporter for Bankrate. She is a former data analyst turned financial journalist who previously worked at Yahoo Finance, CNET, Cashay.com and JPMorgan Chase covering the housing and retirement beats.

Read more from Dhara Singh

Learn more about specific loan type rates
Loan Type Purchase Rates Refinance Rates
The table above links out to loan-specific content to help you learn more about rates by loan type.
30-Year Loan 30-Year Mortgage Rates 30-Year Refinance Rates
20-Year Loan 20-Year Mortgage Rates 20-Year Refinance Rates
15-Year Loan 15-Year Mortgage Rates 15-Year Refinance Rates
10-Year Loan 10-Year Mortgage Rates 10-Year Refinance Rates
FHA Loan FHA Mortgage Rates FHA Refinance Rates
30-Year FHA Loan 30-Year FHA Loan Rates 30-Year FHA Refinance Rates
VA Loan VA Mortgage Rates VA Refinance Rates
ARM Loan ARM Mortgage Rates ARM Refinance Rates
5/1 ARM 5/1 ARM Rates 5/1 Refinance Rates
7/1 ARM 7/1 ARM Rates 7/1 Refinance Rates
10/1 ARM 10/1 ARM Rates 10/1 Refinance Rates
Jumbo Loan Jumbo Mortgage Rates Jumbo Refinance Rates
30-Year Jumbo Loan 30-Year Jumbo Loan Rates 30-Year Jumbo Refinance Rates