FHA Loan Rates for Apr 18, 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
A federally insured program with a long track record—and one of the lowest down payments outside VA/USDA.
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 lender can help you stack grants.
FHA At a Glance
MIP costs, county loan limits, and how to take the next step—quick reference before you compare rates.
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, income history, occupancy, and a home that meets FHA standards. Review FHA borrower eligibility and FHA property eligibility below.
A licensed lender can run your numbers and compare FHA, conventional, and other options. First-time home buyer programs →
See if you qualify →FHA vs Conventional
Side-by-side on down payment, credit, mortgage insurance, and limits—so you can see where FHA usually wins.
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.
FHA Borrower Eligibility
These are the main boxes a borrower needs to check. Your lender runs the actual numbers.
Credit score
580+ qualifies for 3.5% down. 500–579 generally requires 10% down. Lenders often set their own floor above the FHA minimum.
Down payment & gifts
Minimum is 3.5% (580+ score) or 10% (500–579). FHA allows the full amount to come from a gift—family, employer, labor union, or an approved charitable or government program. The gift can't be a loan; a signed gift letter is required.
Debt-to-income (DTI)
FHA guidelines target a housing ratio around 31% and total DTI around 43%. Automated underwriting can approve stronger files above those thresholds—sometimes 50%+ on the back end. Manual underwriting uses tighter caps.
Income & employment
Documented income and a stable work pattern are required. Be prepared to explain job changes or gaps. Your lender sets the exact documentation list.
Primary residence
The home must be your main residence—not a second home or investment property—and you must move in within the timeline FHA and your contract require.
Federal debt
Delinquent federal debt generally must be resolved or on an approved repayment plan before closing.
Bankruptcy & foreclosure
HUD uses fixed waiting windows. Rough guide: Chapter 7 ≈ 2 years from discharge; Chapter 13 ≈ 1 year+ in the plan with required approvals; foreclosure / deed-in-lieu / short sale ≈ 3 years from completion. Documented extenuating circumstances may shorten the wait.
FHA Property Eligibility
The home and loan have to fit FHA rules—property type, condition, county limits, and mortgage insurance.
Eligible properties
One-to-four unit homes, FHA-approved condos, and some manufactured homes that meet FHA rules. For 2–4 units, you must live in one unit.
Appraisal & condition
The home must pass an FHA appraisal and meet FHA minimum property standards (safety, soundness, security). Fixer-uppers may need repairs before closing unless using a rehab product like 203(k).
Loan limits
FHA caps loan size by county—see FHA At a Glance above for 2026 figures. Above your county limit, FHA financing won't apply without a larger down payment to stay under the cap.
Mortgage insurance
FHA requires upfront and monthly MIP regardless of down payment. Factor that cost into your affordability—more detail in MIP at a glance above.
Ready to see if you fit? Get Pre-Approved with a Lender or connect with a lender about stricter requirements and other loan options.
Not sure if FHA is the right first-time home buyer program for you?
Talk with a licensed lender 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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Frequently Asked Questions
Credit, mortgage insurance, loan limits, condos, and gift funds—common FHA questions in plain language.