What are FHA mortgage rates today?

As of March 2026, FHA loan rates average 6.25-6.75% for 30-year fixed terms, typically 0.25-0.50% lower than conventional rates. However, FHA loans require mortgage insurance that adds to the effective cost.

Are FHA loan rates lower than conventional?

FHA base rates are usually lower than conventional, but FHA mortgage insurance premiums (MIP) can make the total monthly payment higher. Borrowers with 720+ credit often pay less with conventional loans.

FHA Loan Rates Today (March 2026): Current FHA Mortgage Rates

Compare current FHA loan rates and understand how FHA financing compares to conventional mortgages.

Current FHA Loan Rates

Rates as of March 2026. Updated daily.

Loan Type	Rate	APR*
30-Year FHA	6.375%	7.05%
15-Year FHA	5.750%	6.35%
FHA 5/1 ARM	5.500%	6.95%

*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

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