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Today's 30 Year fixed purchase rate
6.500%
APR
0.000%
1 day change
1.007%
90 day change
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Best Lenders for FHA Loans of July 2024
Finance your dream home with the best rates
Comparing different FHA home loans can help ensure you are getting the most current rates. Check our best FHA lenders today to find a home loan for purchase or investment.
Best Lenders for FHA Loans of July 2024
Comparing different FHA home loans can help ensure you are getting the most current rates. Check our best FHA lenders today to find a home loan for purchase or investment.
Best Lenders for FHA Loans of July 2024
9.7
Based on 32,925 Reviews
4.7
TrustPilot is an open, global platform where users write product reviews and assign products a star rating. In the event that a product does not have a TrustPilot score, their score will be based solely on the Semrush score (see below).
  • Digital-only mortgage platform
  • Loans customized to your needs
  • Opportunities to get cash toward closing
  • Millions of satisfied borrowers
8.6
No reviews on
TrustPilot is an open, global platform where users write product reviews and assign products a star rating. In the event that a product does not have a TrustPilot score, their score will be based solely on the Semrush score (see below).
  • Works specifically with VA loans
  • Get discounts for past service
  • No minimum credit score
  • No SSN or hard credit query
8.2
No reviews on
TrustPilot is an open, global platform where users write product reviews and assign products a star rating. In the event that a product does not have a TrustPilot score, their score will be based solely on the Semrush score (see below).
  • Quick and easy comparison tool
  • A+ rating from Better Business Bureau
  • No maximum loan amount
  • Get rates without affecting credit score
Looking to refinance your mortgage?
9.7
Based on 32,925 Reviews
4.7
TrustPilot is an open, global platform where users write product reviews and assign products a star rating. In the event that a product does not have a TrustPilot score, their score will be based solely on the Semrush score (see below).
  • Digital-only mortgage platform
  • Loans customized to your needs
  • Fast streamlined application
  • Millions of satisfied borrowers
  • Home loan experts available 24/7
Current Mortgage Rates for July 2024
Average Rate
Today
Average Rate
3 Months Ago
Purchase
30-year fixed
6.500%
7.507%
Purchase
15-year fixed
5.469%
6.357%
Refinance
30-year fixed
6.584%
6.686%
Refinance
15-year fixed
5.787%
6.305%

Comparing the Best FHA Lenders

Whether you’re a first-time buyer or you’ve done this before, purchasing a new home is always a complex process. Getting a mortgage can be particularly challenging given the costs, fees, and paperwork involved. If you have poor credit or don’t have the funds for a standard 20% down payment, then an FHA loan may be the right option for you. This website is designed to help you find the best FHA lenders. So, if you’re looking for an FHA loan in your state, keep reading.

What is an FHA Loan?

FHA loans are home loans guaranteed by the U.S. Federal Housing Administration and serviced by qualified FHA mortgage lenders. FHA loans come in two forms: 3.5% down payment for borrowers with credit of 580-619, or 10% down payment for borrowers with 500-579 credit. Repayment terms range from 15 years to 30 years.

As a condition of receiving an FHA loan, borrowers must pay monthly private mortgage insurance (PMI). This involves an upfront payment of 1.75% of the loan amount, plus an annual premium ranging from 0.45% to 0.85% of the loan amount.

How to Apply for an FHA Loan

To get your FHA loan application approved, you’ll need to provide personal and financial information including your social security number, recent pay stubs, tax returns, bank statements, and proof of other sources of income. Your FHA lender will then perform a hard credit check before deciding whether to preapprove you for a loan.

Other FHA loan requirements include

  • Borrowers must have a valid Social Security Number and be a U.S. citizen or lawful U.S. resident.
  • The loan can only be applied to a 1-4 unit property used as the borrower’s primary residence.
  • An FHA-approved appraiser must confirm the property meets certain minimum standards. If the appraiser deems the home isn’t up to standard, the borrower may need to pay for the repairs at closing.
  • The borrower’s monthly mortgage payments may not exceed 30% of their gross monthly income.
  • The borrower must have been in consistent employment for at least two straight years or must have some form of verifiable income.
  • Borrowers that have filed for Chapter 7 bankruptcy in the past 2 years or Chapter 13 bankruptcy in the past year are ineligible.
  • Borrowers that have had a foreclosure in the past 3 years are ineligible.

Types of Rates

Fixed-Rate Mortgages

Standard FHA loans have fixed rates. When you take a fixed-rate FHA loan, you pay more in year one than you would with an adjustable-rate mortgage. However, you protect yourself from the risk of higher interest rates and higher monthly payments later in life. Given that interest rates are still hovering near historical lows in 2022, the only direction that rates can realistically go from here is upward–which is why locking in a fixed-rate mortgage is currently a better option than betting on an adjustable-rate.

Adjustable-Rate Mortgages

The FHA Section 251 Adjustable Rate Mortgage program is an alternative FHA loan with adjustable rates. The conditions are slightly different to those for a fixed loan, so make sure to speak to your lender when filing an FHA loan application.

Alternatives to FHA Loans

Conventional Home Loans

The most common form of mortgage is a conventional mortgage, also known as a conforming loan. This type of home loans involves two parties: the borrower (you) and the lender. Most lenders require at least a 20% down payment on a conventional mortgage. However, an increasing number of lenders are offering mortgage preapproval with just a 3% down payment requirement.

Jumbo Loans

Jumbo loans are loans that exceed the legal conforming loan limits set by the Federal Housing Finance Agency (FHFA). Because jumbo loans involve more money and therefore greater risk to mortgage companies, they typically have stricter qualifying requirements. In 2022, the conforming loan limit is $647,200 in most U.S. counties and as much as $970,800 in high-cost areas such as the greater New York, Washington, D.C., San Francisco, and Los Angeles areas.

VA Loans

VA loans are a government-backed loan administered by the Department of Veteran Affairs. The minimum credit requirement for a VA loan is usually 620+, the same as a conventional loan, but the big prize is the zero down payment requirement. The following people may apply for a VA loan: veterans who have served at least 90 consecutive days of active service in wartime or 181 days of active service in peacetime; members of the National Guard and Reserve who have served at least 6 years; and spouses of veterans who died in the line of duty or as a consequence of a service-related injury.

USDA Loans

Like other government-backed loans, lenders may only offer USDA loans to borrowers who meet the qualifying requirements – in this case, the main requirement is purchasing in a rural or semi-rural area. USDA mortgages require no down payment but do require monthly PMI until you reach 20% equity.

What to Look for When Comparing FHA Lenders

APR

The monthly payments on a mortgage comprise principal, as in the amount remaining on your loan, and interest, as in the money the lender collects for providing the loan. Your APR, or annual percentage rate, consists of the interest rate plus certain other lender fees. The lower the interest rate / APR, the lower your monthly payments to the lender.

Terms

The repayment term, or loan duration, is another important factor when comparing FHA mortgage lenders. The typical repayment term is 15-30 years. There is no right or wrong when it comes to repayment terms; what’s best for you depends largely on how much you can afford to pay each month. The shorter the term, the higher your monthly payments but the less you’ll pay in interest over the life of the loan. The longer the term, the lower your monthly payments but the more you’ll pay your lender in the long run.

Ease of application

Gone are the days when you had to walk into a physical branch to get preapproved for an FHA loan. These days lenders let you apply for an FHA loan online, sometimes through a fully automated online mortgage platform and other times with phone assistance from a loan agent. If convenience is important to you, then keep an eye out for digital-friendly lenders.

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