FHA Loan Rates for Mar 31, 2026
3.5% down, flexible credit—see if you qualify. FHA helps first-time buyers get in when conventional loans won't. Compare rates below and get a personalized quote in minutes.
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FHA Loan Highlights
When conventional loans say no, FHA often says yes. Lower barriers, flexible credit, and government backing that lets lenders work with you.
3.5% down
Lowest down payment for non-military buyers. On a $300K home, that's $10,500—often covered by gift funds.
Credit 580+
FHA accepts scores as low as 580 for 3.5% down. 500–579 may qualify with 10% down. Conventional typically wants 620+.
Government-backed
FHA insures the loan, so lenders take less risk. That's why they can offer competitive rates to borrowers with thinner credit.
Since 1934
Created during the Great Depression to stop foreclosures and expand homeownership. One of the world's largest mortgage insurers.
Gift funds OK
Family, employers, or approved nonprofits can gift 100% of your down payment. Must be documented with a gift letter.
Single-family to 4-plex
Primary residence, approved condos, or 2–4 unit properties (you must live in one unit). Not for investment-only purchases.
Why FHA Works for First-Time Buyers
FHA was designed to expand access to homeownership. If you're entering the market with limited savings or credit history, FHA can be the bridge.
Lower barrier to entry
FHA opens the door when conventional wants 5–20% down and 620+ credit.
Seller concessions up to 6%
Seller can pay toward closing costs, prepaids, or rate buy-downs.
Down payment assistance friendly
DPA programs work with FHA—a broker can help you stack grants.
FHA At a Glance
MIP at a glance
FHA requires mortgage insurance: an upfront premium (1.75% of the loan, paid at closing or financed in) and a monthly premium built into your payment. Both add to your total cost.
With less than 10% down, MIP typically lasts the life of the loan. Many borrowers refinance to a conventional loan once they reach 20% equity to eliminate it.
Full MIP breakdown →Loan limits (2026)
$498,257 in most areas; up to $1,149,825 in high-cost counties. Limits are set by county based on local median home prices—many suburban and urban areas qualify for the higher tier.
Your lender will confirm your county's limit. Limits also vary for 2–4 unit properties.
Eligibility & next steps
Beyond credit and down payment: FHA looks at debt-to-income (typically under 57%), steady income (usually 2 years), primary residence, and property meeting FHA minimum standards.
A licensed broker can run your numbers and compare FHA, conventional, and other options. First-time home buyer programs →
See if you qualify →FHA vs Conventional
FHA fits when credit or down payment is tight; conventional can cost less long-term if you qualify and put 20% down to avoid PMI.
Not sure if FHA is the right first-time home buyer program for you?
Talk with a licensed broker about your credit, down payment, and budget. Below average credit or no down payment? FHA may still be an option. They can help you compare FHA, conventional, and other programs so you find the right fit.
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