FHA loans are government-backed mortgages for single-family and multifamily homes. They’re insured through the Federal Housing Administration (FHA) and offered through FHA-approved lenders.

What are the different types of FHA loans?

The FHA insures a variety of loan programs tailored to different situations, including: Basic home mortgage loan 203(b): A standard mortgage loan. Borrowers must meet credit requirements and purchase a one-to-four unit structure with a price below the area’s mortgage limit. Up to 96.5% financing available. FHA adjustable-rate mortgages (ARMs): Unlike fixed-rate mortgages that have the same interest rate for the life of the loan, adjustable-rate mortgages start out with a lower interest rate for a certain amount of time, and then the rate adjusts up or down on a regular basis, typically once a year, after that period expires. You might consider an ARM if you plan to sell the home before the rate adjusts, or if you expect that your income will increase to compensate for potentially higher payments. Otherwise, the risk of a significantly higher payment down the road is not to be taken lightly. 203(k) rehabilitation mortgage: You can use this loan to finance up to $35,000 to repair, upgrade or improve a single-family home. Home equity conversion mortgage (HECM): Seniors can use this reverse mortgage program to withdraw a portion of their home’s equity to receive as income. FHA streamline refinance: This refinance option requires minimal borrower credit documentation and underwriting.

Are FHA loans cheaper than other loans?

Not always. FHA loans offer a lot of flexibility and sometimes do have lower interest rates. But there is a downside: FHA closing costs are steep, and the mortgage insurance premium is the main culprit. As a borrower, you'll need to come up with 1.75 percent of the loan amount at closing — on a $300,000 loan, that’s $5,250.

FHA loan rates | Bankrate | Compare rates today

Weekly national mortgage interest rate trends

Current mortgage rates

30 year fixed FHA

6.14%

Today's national FHA mortgage interest rate trends

For Friday, December 05, 2025, the national average 30-year FHA mortgage interest rate is 5.78%. The national average 30-year FHA refinance interest rate is 6.56%.

Current FHA loan rates

FHA mortgage and refinance interest rates vary based on a variety of factors. These include:

Your financial profile: Your credit score and the amount of your down payment both influence the rate a lender will offer you. Generally, the larger your down payment and the higher your credit score, the lower your rate will be.
Loan characteristics: Elements of your particular loan also influence your rate. For example, an FHA cash-out refinance will typically have a higher rate than an FHA purchase loan. Your loan amount and loan term also make a difference, with larger amounts and longer terms garnering higher rates.
Market conditions and lender policies: If rates are generally higher or lower when you take out your FHA loan, that — as well as a lender's specific policies — will also influence your rate.

Product	Interest Rate	APR
30-Year FHA Rate	5.78%	5.84%
30-Year Fixed Rate	6.27%	6.33%
15-Year Fixed Rate	5.57%	5.67%
30-Year VA Rate	6.14%	6.18%

Rates as of Friday, December 05, 2025 at 6:30 AM

Product	Interest Rate	APR
30-Year FHA Rate	6.56%	6.60%
30-Year Fixed Rate	6.72%	6.79%
15-Year Fixed Rate	6.13%	6.23%
30-Year VA Rate	6.51%	6.54%

Rates as of Friday, December 05, 2025 at 6:30 AM

Bankrate’s mortgage rates include national rate and APR averages; Bankrate Monitor (BRM) National Index rate averages; and “top offers”:
- National rate and APR averages: Displayed as daily and weekly averages, these rates and APRs are primarily collected from the 5 largest banks and thrifts across hundreds of markets in the U.S.
- Bankrate Monitor (BRM) National Index rate averages: Reported weekly, this long-standing survey collects rates from banks and thrifts across hundreds of markets in the U.S.
- “Top offers”: Displayed daily and weekly, these are an average of the rates listed first on our rate tables as advertised by our partners. The averages shown are based on the loan type and term selected.
You can compare national average mortgage rates to top offers to see how much you could save when shopping on Bankrate.

Learn more about how we collect, display and report mortgage rates.

FHA loans vs. conventional loans

FHA loans typically have lower credit-score requirements than conventional loans, and sometimes have lower interest rates too — but they also have higher upfront costs. Below are some of the costs associated with an FHA loan versus a 30-year fixed loan. Keep in mind that interest rates depend on the market and the borrower's creditworthiness.

	30-year fixed FHA loan	30-year fixed conventional loan
Note: These mortgage interest rates are as of Nov. 19, 2025. The figures do not include homeowners insurance, property taxes or other costs that might be included with your monthly mortgage payment.
Home price	$400,000	$400,000
Down payment	3.5% ($14,000)	3% ($12,000)
Loan amount	$386,000	$388,000
Interest rate	6.75%	6.37%
Monthly mortgage payment (principal and interest)	$2,504	$2,419
Interest total over 30 years	$515,292	$482,965
Upfront mortgage insurance	$6,755	$0
Monthly mortgage insurance	$177 for life of loan	$317 until 80% LTV
Monthly mortgage payment with mortgage insurance	$2,861 for life of loan	$2,736 until 80% LTV

BANKRATE EXPERT FAQ

If you qualify for both a conventional and FHA loan, which should you choose?

Jeff Ostrowski

Writer and Housing Market Analyst

If you qualify for both, I’d almost certainly go for the conventional loan. FHA’s hefty mortgage insurance (MIP) includes 1.75 percent of the loan amount upfront, plus monthly premiums. FHA loans are a great option for borrowers with sub-700 credit scores and not a lot of cash for a down payment, but the downside is the MIP, which FHA charges because of the higher risk factor. If you can get a conventional loan, you’ll find that the private mortgage insurance (PMI) costs less and is easier to get rid of once your loan-to-value (LTV) ratio hits 80 percent. For borrowers who don’t qualify for a conventional loan, the smart move is to take the FHA loan, then refi into a conventional loan once your credit improves and the LTV ratio looks better.

FHA loan requirements

To get an FHA loan, you must meet the following requirements:

FHA loan limits: $524,225 for a single-family home, up to $1,209,750 in high-cost areas
Minimum credit score: 580 with a 3.5% down payment, or 500 with a 10% down payment
Maximum debt-to-income (DTI) ratio: Up to 50%
Mortgage insurance premiums (MIP): 1.75% of your loan principal upfront; monthly premiums thereafter based on amount borrowed, down payment and loan term and type
Financial and work history: Proof of consistent employment and income

Learn more: FHA loan requirements

FHA mortgage insurance

FHA loans require borrowers to pay mortgage insurance premiums (MIP), regardless of the size of your down payment. These costs add a meaningful amount to your monthly payment, so keep them in mind when you’re budgeting for a home.

There are two types of premiums: the upfront mortgage insurance premium (1.75% of the base loan amount), as well as an annual mortgage insurance premium (0.15% to 0.75%, depending on the loan term, amount and loan-to-value ratio). If your down payment is less than 10%, the annual premium is owed for the loan’s lifetime; if you put down 10% or more, though, the premiums can be removed after 11 years.

Should you get an FHA loan?

FHA loans are aimed at certain types of borrowers. You might want to consider an FHA loan if:

Your credit score is below 700 (but above 500)
You have limited down payment savings (but enough to put down 3.5 percent, plus closing costs)
You can pay a little bit more for mortgage insurance in exchange for looser underwriting criteria
You’re a first-time homebuyer (includes those who have not owned a home for at least three years)

Pros of FHA loans

Lower down payment requirement
Lower credit requirements
Friendly to first-time buyers
Can lock in a low rate without a large down payment
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

Cons of FHA loans

Borrower required to pay two types of mortgage insurance: an upfront mortgage insurance premium (MIP) and an annual premium, paid in monthly installments
The home purchased must meet certain standards, including passing an FHA appraisal, which may decrease available buying options

How to get the best FHA loan rate

While FHA loan rates can sometimes be lower than the rates on other types of mortgages, there are still ways to ensure you get the lowest possible rate for your situation. These include:

Work on your credit score. For the most competitive FHA rate, you’ll need good to excellent credit, though you can still qualify with a score as low as 500.
Improve your debt-to-income (DTI) ratio. Generally, the lower your DTI ratio, the better your rate.
Compare multiple offers: Shopping around can save you thousands of dollars over the life of the loan. Consider the interest rate as well as the APR, which accounts for the lender’s fees. Be sure to read customer reviews on lenders as well for additional insight.

Learn more: How to get the best mortgage rate

FAQ

FHA loans are government-backed mortgages for single-family and multifamily homes. They’re insured through the Federal Housing Administration (FHA) and offered through FHA-approved lenders.
The FHA insures a variety of loan programs tailored to different situations, including:
- Basic home mortgage loan 203(b): A standard mortgage loan. Borrowers must meet credit requirements and purchase a one-to-four unit structure with a price below the area’s mortgage limit. Up to 96.5% financing available.
- FHA adjustable-rate mortgages (ARMs): Unlike fixed-rate mortgages that have the same interest rate for the life of the loan, adjustable-rate mortgages start out with a lower interest rate for a certain amount of time, and then the rate adjusts up or down on a regular basis, typically once a year, after that period expires. You might consider an ARM if you plan to sell the home before the rate adjusts, or if you expect that your income will increase to compensate for potentially higher payments. Otherwise, the risk of a significantly higher payment down the road is not to be taken lightly.
- 203(k) rehabilitation mortgage: You can use this loan to finance up to $35,000 to repair, upgrade or improve a single-family home.
- Home equity conversion mortgage (HECM): Seniors can use this reverse mortgage program to withdraw a portion of their home’s equity to receive as income.
- FHA streamline refinance: This refinance option requires minimal borrower credit documentation and underwriting.
Not always. FHA loans offer a lot of flexibility and sometimes do have lower interest rates. But there is a downside: FHA closing costs are steep, and the mortgage insurance premium is the main culprit. As a borrower, you'll need to come up with 1.75 percent of the loan amount at closing — on a $300,000 loan, that’s $5,250.

Additional FHA loan resources

Written by

Jeff Ostrowski Jeff Ostrowski