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FHA loan rates

On Monday, December 05, 2022, the national average 30-year FHA mortgage APR is 6.80%. The average 30-year FHA refinance APR is 6.74%, 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 5.95% 6.80%
30-Year Fixed Rate 6.54% 6.56%
20-Year Fixed Rate 6.43% 6.45%
15-Year Fixed Rate 5.90% 5.93%
10/1 ARM Rate 6.29% 6.96%
5/1 ARM Rate 5.48% 5.48%
30-Year VA Rate 6.01% 6.13%

Rates as of Monday, December 05, 2022 at 6:30 AM

What is a FHA loan?

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

FHA- backed loans are often more accessible than their conventional counterparts. In most cases, FHA loans have lower income and credit score requirements. In addition, FHA loans 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 down payment. As a result, FHA loans are popular among first-time homebuyers, people on tight budgets and folks who have lower credit scores.

That said, 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, which is owed as long as you have the loan if your down payment is less than 10 percent, is based on loan terms, loan amount and the loan-to-value ratio. Mortgage insurance costs add a meaningful amount to your monthly payment, so keep these costs in mind when you’re budgeting for a home.

Read more about FHA mortgage costs.

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

FHA loan requirements

  • Loan limits: National ceiling of $970,800, low-cost areas limit of $420,680
  • 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
  • Steady income and proof of employment

FHA loan FAQs

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