FHA Loans
FHA Loan Rates Today - 3.5% Down, 580+ FICO
FHA loans are the most accessible mortgage program for first-time and credit-challenged buyers. 3.5% down with 580+ FICO, flexible underwriting, and competitive rates. See live FHA pricing below.
FHA Loan Facts
- Down payment as low as 3.5% with 580+ credit score
- Down payment assistance programs available to fully cover the 3.5% down payment
- Credit scores 500-579 require 10% down payment
- Upfront Mortgage Insurance Premium (UFMIP) of 1.75% - can be financed into the loan
- Annual MIP of 0.55% for most loans - required for the life of the loan with less than 10% down
- Maximum DTI up to 57% with compensating factors
- Primary residence only - properties up to 4 units eligible
- FHA 203(k) renovation loans available for fixer-uppers
FHA vs Conventional Quick Compare
| Factor | FHA | Conventional |
|---|---|---|
| Min FICO | 580 (3.5% down) | 620 |
| Min down | 3.5% | 3% first-time, 5% repeat |
| MI structure | UFMIP 1.75% + monthly MIP | PMI monthly only |
| MI removable? | No (with 3.5% down) | Yes at 80% LTV |
| 2026 loan limit | $541,287 | $832,750 baseline |
Frequently Asked Questions
What is an FHA loan?+
An FHA loan is a mortgage insured by the Federal Housing Administration. FHA loans allow lower down payments (3.5% with 580+ FICO, 10% with 500-579) and more lenient credit requirements than Conventional financing. The trade-off is mortgage insurance for the life of the loan unless you put 10%+ down.
What is the FHA loan rate today?+
FHA loan rates change throughout the day. The pricer above returns live wholesale FHA rates for your specific scenario - no personal info required.
What credit score do I need for FHA?+
The FHA published minimum is 500, but most lenders impose an overlay of 580 with 3.5% down or 500-579 with 10% down. Some wholesale lenders go to 580 with 3.5% down; very few go below.
How much down payment do I need for FHA?+
3.5% down with 580+ FICO. 10% down with 500-579 FICO. The down payment can come from gift funds, DPA, or savings.
Does FHA have mortgage insurance?+
Yes. Upfront MIP of 1.75% of the loan amount (financed into the loan) plus monthly MIP of 0.55% annually on most loans. Monthly MIP is permanent for the life of the loan if you put less than 10% down at origination.
Is FHA better than Conventional?+
Often better below 700 FICO and at low down payments. Conventional is usually better above 720 FICO with 5%+ down because monthly MI is removable on Conventional but permanent on FHA at 3.5% down. The pricer compares both side by side.
Is the $2,000 Best Price Guarantee available on FHA?+
Yes - the Loan Factory $2,000 Best Price Guarantee covers fixed-rate FHA loans of $200,000+ alongside Conventional and VA. Program rules apply.
Apply for an FHA loan
3.5% down, and the Loan Factory $2,000 Best Price Guarantee on qualifying loans.
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