30-yr fixed6.75%+0.0315-yr fixed6.05%+0.00FHA 30-yr6.55%+0.08VA 30-yr6.38%+0.08Jumbo 30-yr6.82%+0.11Updated September 1, 2026
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Loan type

FHA loans

FHA loans are insured by the Federal Housing Administration. They accept lower credit scores and a 3.5% down payment in exchange for mortgage insurance that lasts most of the loan.

Estimate your FHA payment with insurance

Who this is for

  • Credit scores from 580 (3.5% down) or 500 to 579 (10% down)
  • First-time and repeat buyers of a primary residence
  • Borrowers with higher debt-to-income ratios, sometimes up to 50% or more

How it works, step by step

  1. Check the FHA loan limit for your county; it changes every year.
  2. Budget for two mortgage insurance premiums: 1.75% up front (usually financed) and an annual premium paid monthly.
  3. The home must pass an FHA appraisal, which checks safety and condition, not just value.
  4. Plan the exit: many FHA borrowers refinance to conventional once they reach 20% equity to drop the insurance.

Pros

  • Easiest qualifying of the major loan types
  • Rates are often lower than conventional for the same credit score
  • Gift funds allowed for the whole down payment

Cons

  • Mortgage insurance for the life of the loan if you put under 10% down
  • Up-front premium adds to the loan balance
  • Property condition rules can complicate older homes