FHA loan interest rates
FHA loans come in 15- or 30-year fixed rate terms for qualified applicants.
|Term||30-year fixed - FHA|
|Term||15-year fixed - FHA|
|30-year fixed - FHA|
|15-year fixed - FHA|
What is an FHA loan?
An FHA (Federal Housing Administration) loan is a government-backed home mortgage loan with more flexible lending requirements than conventional loans. Because of this, FHA mortgage interest rates may be somewhat higher. The buyer may also have to pay monthly mortgage insurance premiums, along with their monthly loan payments.
FHA mortgage insurance
The Federal Housing Administration (FHA) insures FHA loans. The FHA qualification process may be easier because it has more flexible down payment and credit requirements. If you're a current military member or veteran, you may be eligible for a VA home loan with little or no down payment.
FHA loan benefits and considerations
FHA down payments can be lower
An FHA mortgage may require a down payment as low as 3.5 percent. The interest rate may be somewhat higher than that of a conventional mortgage. The buyer may also have to pay monthly mortgage insurance premium with a lower down payment.
Required credit scores for FHA loans are lower
Home buyers can qualify for FHA loans without having a long credit history or good credit score.
Popular for refinancing
Many borrowers with adjusting ARMs (adjustable rate mortgages) look to refinance into fixed-rate FHA loans. Learn more about your refinance options.
Current U.S. Bank customers can apply for a fast, competitive mortgage refinancing loan called a Streamline Refinance. This loan could allow you to reduce your loan term or qualify for a lower interest rate.
FHA loan requirements and qualifications
- FHA loan limit - FHA home loans have maximum mortgage limits that vary by state and county.
- FHA down payment - FHA loan guidelines require a minimum down payment of 3.5 percent.
- FHA property requirements - FHA loans require that the home being purchased meets certain conditions and is appraised by an FHA-approved appraiser. New FHA loans are available only for homes that will be used as the buyer's primary residence.
- Have been appraised by an FHA-approved appraiser
- Will be used as the buyer's primary residence (where the buyer lives)
- Protect the health and safety of the occupants
- Protect the security of the property
- Do not have physical deficiencies or conditions affecting its structural integrity
An FHA mortgage may be right for you if your credit does not meet the requirements for a conventional loan, or if you have limited cash for a down payment. Compare mortgage options to learn more, or contact a mortgage loan officer for help deciding which mortgage option is right for you.