Current FHA Mortgage Rates

Review current FHA mortgage rates for December 13, 2018. Use the table below to compare multiple FHA lenders in your area. The table shows FHA mortgage rates next to conventional loans so you can see the difference in interest rates, fees, APR and monthly payment. The APR figure factors in both the interest rate and selected closing costs which enables you to compare multiple loan terms with one number.
FHA mortgage rates are usually lower than conventional loan rates but the costs are higher because you pay an upfront mortgage insurance premium (MIP), which is included in the fees and APR shown in the table. This is why the APR and upfront fees for FHA loans are higher than for conventional loans. The lower FHA mortgage rate, however, reduces your loan payment which can save you money over time.
FHA rates vary based on multiple factors including your mortgage program and length, credit score and if you decide to pay points to lower your rate. We recommend that you change the options in the refine your search menu to view updated FHA mortgage rates and monthly payments based on your individual loan amount, loan type, down payment and other inputs.
The FHA Mortgage Program is administered by HUD but mortgages are provided by approved lenders such as the one listed in the table. We advise you to contact at least five lenders as shopping for your mortgage is the best way to find the FHA loan with the lowest rate and fees.

Current Mortgage Rates

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Data provided by Informa Research Services. Payments do not include amounts for taxes and insurance premiums. Click here for more information on rates and product details.

Why Select an FHA Mortgage

Low Down Payment.

The main benefit of the FHA mortgage program is that it enables borrowers to buy a home with a down payment as low as 3.5% of the property purchase price. This compares to 10% - 20% down payment required to buy a home with most conventional mortgage programs. Borrowers can also combine the FHA program with a down payment assistance program or closing cost grant to further reduce the personal financial contribution they are required to make to buy a home. The FHA program charges borrowers additional up-front and ongoing fees but makes home ownership more attainable, especially for low-to-moderate income borrowers. The low down payment requirement also makes the FHA program an attractive financing option for first-time buyers.

Low Interest Rate.

FHA mortgage rates are typically .125% - .500% lower than the current interest rate on a conventional loan or low down payment mortgage program. This is because FHA loans are backed by the federal government plus borrowers are required to pay an ongoing FHA Mortgage Insurance Premium (MIP) which is similar to private mortgage insurance and protects the lender against default or foreclosure. The FHA MIP is an extra ongoing cost for borrowers but the insurance enables lenders to offer lower rates on FHA loans. Borrowers should consider both the interest rate and FHA MIP when evaluating the total cost of the loan.

Flexible Borrower Qualification Requirements.

The borrower qualification requirements for the FHA mortgage program are more flexible than for other low or no down payment mortgage programs. For example, lenders have more discretion when applying debt-to-income ratios to determine what size mortgage borrowers can afford. The higher the debt-to-income ratio, the larger the mortgage the borrower can afford. Borrowers with good credit scores, significant financial reserves or additional sources of income that are not included in their loan application may be able to qualify for a higher mortgage amount with the FHA program.

Available to All Borrowers.

The FHA mortgage program is available to all borrowers that qualify. There are no borrower income limits although there are limits on loan amounts available through the program. Additionally, the program applies to all eligible properties, up to four units in size, as long as the borrower occupies the property.

Great Program for Credit-Challenged Borrowers.

The FHA program requires that borrowers have a minimum credit score of only 580 if you make a down payment between 3.5% and 10.0% and a score of only 500 if you make a down payment of at least 10%. The credit score requirement for an FHA mortgage is one the lowest of all no and low down payment loan programs. If you have a ding on your credit report or your score is not as high as you want it to be, you still may be able to use the FHA Program to buy a home.

You May Be Able to Use the Program to Buy a Home With No Personal Financial Contribution.

Eligible applicants can combine an FHA mortgage with a down payment assistance program to buy a home with minimal personal financial contribution. You are still required to put 3.5% down to qualify for the FHA program but the source of funds can be from a down payment grant or even a personal gift. Coming up with the funds to pay for a down payment and closing costs can be challenging even for FHA borrowers so you should consider down payment and closing cost assistance programs to help you get over this financial hurdle.

The Property Can Be Located Anywhere.

Unlike some other no or low down payment mortgage programs, you can use the FHA mortgage program to finance the purchase of a home located anywhere in the United States as well as certain U.S. territories. Some programs require that you buy a home located in certain counties or census tracts to qualify or receive favorable loan terms, which potentially limits who can use the program. The widespread availability of the FHA program means borrowers have access to it no matter where they live.

Why Borrowers Compare FHA Mortgage Rates on FREEandCLEAR

Save Money.

Comparing FHA mortgage rates can save you thousands. Use our rate tables to find the lender offering the lowest rates and fees

Borrower-Friendly.

Our rate tables put you in control. You can compare lenders anonymously plus you never need to provide your social security number

Top Lenders.

Review FHA mortgage rates from leading lenders. Our lenders offer highly competitive terms to win your mortgage business

More FREEandCLEAR Mortgage Resources

FHA Mortgage Program: https://www.hud.gov/i_want_to/buy_a_home

Loan Program:
Monthly Payment:
APR:
Rate:
Points : Points: Fees you are willing to pay in order to get a lower interest rate. The number of points refers to the percentage of the loan amount that you would pay. For example, "2 points" means a charge of 2% of the loan amount.
Total Lender Fees:
Loan type:
Property Value:
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Date Submitted:

P & I Principal & Interest: A periodic payment, usually paid monthly, that includes the interest charges for the period plus an amount applied to the reduction of the principal balance.
Mortgage Insurance Mortgage Insurance: The monthly cost for a policy that protects the lender in case you're unable to repay the full amount of the loan. It is typically required for loans that have a loan-to-value ratio between 80% to 100%. (Estimated)
Property Tax Property Tax: (Also called "Real Estate Tax.") Property taxes are government assessments on real estate property. With mortgage financing, the local, county or state tax assessment on real estate property is considered part of the monthly housing obligation and typically collected and set aside by the lender ... (Estimated)
Homeowner Insurance Homeowner Insurance: or also commonly called hazard insurance, is the type of property insurance that covers private homes. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one's home, its contents, loss of its use, or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory.lender ... (Estimated)
Homeowner Association Fee Homeowner Association fee: (HOA) fees are funds that are collected from homeowners in a condominium complex to obtain the income needed to pay (typically) for master insurance, exterior and interior (as appropriate) maintenance, landscaping, water, sewer, and garbage costs. (If Any)
Total Monthly Housing Payments

Points Points Fees you are willing to pay in order to get a lower interest rate. The number of points refers to the percentage of the loan amount that you would pay. For example, "2 points" means a charge of 2% of the loan amount.
Origination Fee Origination Charge: A loan origination charge is a fee charged by the lender for evaluating, processing, and closing the loan.
Credit Report Fee Credit Report Fee: Fee charged to obtain an applicant's credit history prepared by one or all of the three major credit bureaus. Used by lender to determine the borrower's creditworthiness.
Tax Service Fee Tax Service Fee: A fee charged by the lender to cover the cost of retaining a tax service agency. These agencies monitor the property tax payments on the property and report the results to the lender.
Processing Fee Processing Fee: A processing fee is a charge by the lender for clerical items associated with the loan. Examples of processing include loan set up, organization of loan conditions for underwriting, and preparing required disclosures for the borrower.
Underwriting Fee Underwriting Fee: A fee charged by the lender to verify information on the loan application, authenticate the property's value, and perform a risk analysis on the overall loan package.
Wire Transfer Fee Wire Transfer Fee: In most cases lenders wire funds to escrow companies to fund a loan. Commercial banks that perform this function will charge the lender so the fee is generally passed on to the borrower. (If Any)
FHA Upfront Premium FHA Upfront Premium: A fee paid in cash at the close of escrow or more commonly it is financed into the loan. These premiums are pooled together by the FHA and are used to insure the risk of borrower default on FHA loans. FHA upfront premiums are prorated over a five year period, meaning should the homeowner refinance or sell during the first five years of the loan, they are entitled to a partial refund of the FHA upfront premium paid at loan inception. (If any)
VA funding Fee (If any)
Flood Fee
Other Fees Other fees could be either additional Administrative Fees that a lender charges or it could be a Flat Fee to cover all lender charges such as: (Origination Fees, Points, Underwriting and Processing Fees, Credit Reports and Tax Service Fees) The flat fee does not include prepaid items and third party costs such as appraisal fees, recording fees, prepaid interest, property & transfer taxes, homeowners insurance, borrower's attorney’s fees, private mortgage insurance premiums (if applicable), survey costs, title insurance and related services.
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Monthly Housing Payments

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Why Select an FHA Mortgage

Low Down Payment.

Low Interest Rate.

Flexible Borrower Qualification Requirements.

Available to All Borrowers.

Great Program for Credit-Challenged Borrowers.

You May Be Able to Use the Program to Buy a Home With No Personal Financial Contribution.

The Property Can Be Located Anywhere.

Why Borrowers Compare FHA Mortgage Rates on FREEandCLEAR

More FREEandCLEAR Mortgage Resources

FHA Mortgage Qualification Calculator

FHA Mortgage Program Overview

Summary of Low / No Down Payment Mortgage Programs

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