For a comparison of all major mortgage types — conventional, FHA, VA, USDA, ARM, and jumbo — see the Mortgage Loan Types hub .
Compare current FHA loan rates and understand how FHA financing compares to conventional mortgages.
Table of Contents
Current FHA Loan Rates
Rates as of March 2026. Updated daily.
Loan Type
Rate
APR*
Points
30-Year FHA
6.375%
7.05%
0.0
15-Year FHA
5.750%
6.35%
0.0
FHA 5/1 ARM
5.500%
6.95%
0.0
*APR includes upfront and annual MIP
FHA vs Conventional Rate Comparison
Feature
FHA Loan
Conventional
Base Rate
6.375%
6.875%
Upfront MIP/PMI
1.75%
None
Annual MIP/PMI
0.55%
0.20-0.80%
APR (effective cost)
~7.05%
~6.95%
Min Credit Score
580 (3.5% down)
620
Min Down Payment
3.5%
3%
FHA Rates by Credit Score
Credit Score
FHA Rate
Monthly Payment ($300K home, 3.5% down)*
740+
6.125%
$1,940
700-739
6.250%
$1,963
660-699
6.375%
$1,986
620-659
6.500%
$2,009
580-619
6.750%
$2,056
*Includes principal, interest, MIP, taxes, insurance estimate
FHA Mortgage Insurance (MIP) Costs
Upfront MIP
Loan Amount
Upfront MIP (1.75%)
$200,000
$3,500
$250,000
$4,375
$300,000
$5,250
$350,000
$6,125
$400,000
$7,000
Can be financed into the loan
Annual MIP
Loan Term
Down Payment
Annual MIP
On $300K Loan
30-year
< 5%
0.55%
$1,650/year ($138/mo)
30-year
≥ 5%
0.50%
$1,500/year ($125/mo)
15-year
< 10%
0.40%
$1,200/year ($100/mo)
15-year
≥ 10%
0.15%
$450/year ($38/mo)
MIP Duration
Down Payment
MIP Duration
Less than 10%
Life of loan
10% or more
11 years
Full Payment Comparison: FHA vs Conventional
$350,000 home purchase:
FHA Loan (3.5% down)
Component
Amount
Down payment
$12,250
Loan amount
$337,750 + $5,911 MIP = $343,661
Rate
6.375%
P&I
$2,145
MIP (annual)
$157
Est. taxes/insurance
$400
Total Payment $2,702
Conventional (5% down, 680 credit)
Component
Amount
Down payment
$17,500
Loan amount
$332,500
Rate
7.00%
P&I
$2,212
PMI
$166
Est. taxes/insurance
$400
Total Payment $2,778
In this example: FHA payment is $76/month lower
Conventional (5% down, 740+ credit)
Component
Amount
Loan amount
$332,500
Rate
6.625%
P&I
$2,129
PMI
$133
Est. taxes/insurance
$400
Total Payment $2,662
With higher credit: Conventional payment is $40/month lower
When FHA Is the Better Choice
Situation
Why FHA Works
Credit score 580-680
Better rates than conventional
Limited savings
Only 3.5% down required
High DTI
FHA allows up to 50% DTI
Recent credit events
More flexible underwriting
Gift funds for down payment
100% can be gifted
When Conventional Is Better
Situation
Why Conventional Works
Credit score 720+
Lower total cost
20% down payment
No mortgage insurance
Plan to stay long-term
PMI cancels at 80% LTV (FHA MIP doesn’t)
Investment property
FHA is owner-occupied only
Higher loan amounts
Higher loan limits
FHA Loan Limits (2026)
Area Type
Single Family
2-Unit
3-Unit
4-Unit
Low-cost areas
$498,257
$637,950
$771,125
$958,350
High-cost areas
$1,149,825
$1,472,250
$1,779,525
$2,211,600
High-Cost Area Examples
Metro Area
FHA Limit
San Francisco Bay Area
$1,149,825
New York City
$1,149,825
Los Angeles County
$1,149,825
Washington, DC Metro
$1,149,825
Boston Metro
$913,650
Seattle Metro
$977,500
FHA Qualification Requirements
Requirement
Minimum
Credit score (3.5% down)
580
Credit score (10% down)
500
Down payment
3.5%
Debt-to-income ratio
43% (up to 50% with compensating factors)
Employment
2 years steady
Property type
Owner-occupied primary residence
Loan purpose
Purchase or refinance
FHA Streamline Refinance Rates
If you already have an FHA loan, you can use streamline refinance:
Feature
Details
Current rate
6.25%
Requirements
Must reduce rate OR term
Appraisal required
No
Income verification
No
Credit check
Usually not
“Net tangible benefit”
Required (min 0.5% rate reduction)
FHA Rate History
Period
30-Year FHA Rate
March 2026
6.375%
2025 Average
6.55%
2024 Average
6.42%
2023 Average
6.38%
2022 Average
4.95%
2021 Average
2.75%
Monthly Payment Examples
3.5% down, 6.375% rate, includes MIP:
Home Price
Down (3.5%)
Loan + MIP
Monthly P&I+MIP
$250,000
$8,750
$245,473
$1,671
$300,000
$10,500
$294,568
$2,005
$350,000
$12,250
$343,662
$2,340
$400,000
$14,000
$392,757
$2,674
$450,000
$15,750
$441,851
$3,008
Related: FHA Loan Guide | 30-Year Mortgage Rates | First-Time Home Buyer Programs
Written by
WealthVieu
WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy
