Today's FHA Loans Rates
FHA loans are government-backed mortgages designed for first-time homebuyers and those with lower credit scores. With down payments as low as 3.5% and flexible qualifying criteria, FHA loans make homeownership accessible to millions of Americans.
* Estimated monthly payment based on a $400,000 loan amount. Assumes Rates assume 780+ credit, 75% LTV, primary residence, single-family home.. Your actual rate and payment may differ. Subject to credit approval.
What Is a FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration, a division of the U.S. Department of Housing and Urban Development (HUD). Because the government insures these loans against default, lenders can offer more favorable terms — including lower down payments and more flexible credit requirements — than they could with conventional financing. FHA loans have been helping Americans achieve homeownership since 1934 and remain one of the most popular loan programs in the country, particularly among first-time buyers.
Who Qualifies?
FHA loans are available to a wide range of borrowers. You'll need a minimum credit score of 580 for the 3.5% down payment option, or a score between 500–579 with a 10% down payment. Your debt-to-income ratio should generally be below 43%, though exceptions are possible with compensating factors like savings or stable employment history. The property must be your primary residence — FHA loans cannot be used for investment properties or vacation homes. Both first-time and repeat buyers are eligible.
Pros and Cons
Advantages
- ✓Down payments as low as 3.5% with a 580+ credit score
- ✓More flexible credit requirements than conventional loans
- ✓Competitive interest rates backed by government insurance
- ✓Down payment can come from gifts, grants, or assistance programs
- ✓Available for single-family homes, condos, and up to 4-unit properties
- ✓Streamline refinance option for existing FHA borrowers
Considerations
- ✗Mortgage Insurance Premium (MIP) required for the life of the loan if less than 10% down
- ✗Loan limits vary by county and may restrict purchasing power in high-cost areas
- ✗Property must meet FHA minimum property standards (appraisal requirements)
- ✗Cannot be used for investment properties or second homes
- ✗Upfront MIP of 1.75% added to the loan balance
How to Apply
Getting started with an FHA loan is straightforward. Begin by gathering your financial documents: two years of tax returns, recent pay stubs, bank statements, and identification. At CMS Mortgage, we offer pre-approval in as little as 15 minutes. Once pre-approved, you'll know your budget and can shop for homes with confidence. Our loan officers guide you through every step — from application to closing — and explain your options in plain English.
Get Rate Drop Alerts
We'll notify you instantly when rates drop to your target.
Get Rate Drop Alerts
We'll notify you instantly when rates drop to your target.
Tools to Help You Decide
Run the numbers before you apply.
Explore Related Loan Options
Not sure this is the right fit? Compare your options.