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FHA Mortgage Rates | See Today’s FHA Loan Rates



FHA mortgage rates

What are today’s FHA mortgage rates?

Today’s rates for a 30-year, fixed-rate FHA loan start at 2.25% (3.226% APR), according to The Mortgage Reports’ daily rate survey.

Thanks to their government backing, FHA mortgage rates are competitive even for lower-credit borrowers. But interest rates can vary a lot from one lender to the next, so be sure to shop around for your best offer.

Check your FHA mortgage rates (Jan 8th, 2021)

FHA mortgage rates for today, January 8, 2021

ProgramMortgage RateAPR*Change
30 year fixed FHA2.5%3.478%+0.06%
15 year fixed FHA2.375%3.317%+0.06%
5 year ARM FHA2.5%3.226%Unchanged
Rates are provided by our partner network, and may not reflect the market. Your rate might be different. Click here for a personalized rate quote. See our rate assumptions here.

What is an FHA loan?

FHA loans are mortgages backed by the Federal Housing Administration (FHA), an arm of the federal government. “Backed” means the government insures your lender for part of your loan. So your lender will get some of its money back in case of loan default.

This insurance often referred to as the FHA ‘guarantee,’ lets lenders approve FHA loans for borrowers with only fair credit and a relatively small down payment.

It’s why these home loans are so popular with first-time buyers and those who have issues in their credit history.

FHA mortgage requirements

Of course, lenders won’t approve just anyone. You’ll have to
meet or exceed a few minimum requirements to qualify for an FHA home loan. These

  1. Down payment of 3.5% of the purchase price or higher
  2. Minimum FICO credit score of 580 (note, some lenders set a higher minimum credit score of 620-660)
  3. Maximum debt-to-income ratio (DTI) of 50%
  4. Solid employment record that shows you have a reliable income
  5. Intention to live in the home as your primary residence
  6. No foreclosures no the past three years

It may be possible to get approved for FHA financing with a credit score in the 500-580 range, but only if you have a down payment of 10% or more. And you’ll have a harder time finding lenders that accept these scores.

In addition, your mortgage can’t exceed FHA’s loan limits, which currently max out at $356,362 for a single-family home in most of the U.S. Loan limits are higher in select areas with high-priced real estate.

If your loan amount exceeds FHA’s limit, you’ll need to qualify for a conventional loan, or potentially a jumbo loan.

Verify your FHA loan eligibility (Jan 8th, 2021)

FHA mortgage rates

How low are FHA mortgage rates?

FHA loans have very competitive rates, at least on the surface.

Looking at loan options side by side, you might note that FHA mortgage rates are close to conventional rates. Usually, they’re even lower.

However, there’s a big caveat to those low FHA interest rates. And that’s mortgage insurance.

Mortgage insurance premium or ‘MIP’ is required on all FHA loans. It costs 1.75% of the loan amount upfront and 0.85% per year (broken into 12 monthly payments). This effectively increases the rate you’re paying by nearly a full percentage point.

Mortgage insurance isn’t the same as interest, of course. But it affects the overall cost of your loan.

Don’t think FHA borrowers are being singled out. Nearly everyone with a down payment smaller than 20% has to pay some form of mortgage insurance, though it’s called private mortgage insurance (PMI) on conforming loans from Fannie Mae and Freddie Mac.

When you’re shopping for rates, you should explore all your options and pay attention to the cost of mortgage insurance as well as your mortgage

If you have a higher credit score with less than 20% down, you’re may find conventional PMI much cheaper. But if your score is in the 580 to 620 range, an FHA loan is likely your best (and only) option.

Checkl your FHA mortgage rates (Jan 8th, 2021)

See how FHA mortgage rates compare

ProgramMortgage RateAPR*Change
Conventional 30 year fixed2.75%2.75%-0.06%
Conventional 15 year fixed2.313%2.313%-0.19%
Conventional 5 year ARM3%2.743%Unchanged
30 year fixed FHA2.5%3.478%+0.06%
15 year fixed FHA2.375%3.317%+0.06%
5 year ARM FHA2.5%3.226%Unchanged
30 year fixed VA2.308%2.479%+0.06%
15 year fixed VA2.125%2.445%+0.06%
5 year ARM VA2.5%2.406%Unchanged
Rates are provided by our partner network, and may not reflect the market. Your rate might be different. Click here for a personalized rate quote. See our rate assumptions here.

What types of FHA loan rates are available?

FHA loans come in various flavors. You can choose the traditional 30-year fixed-rate mortgage or a 15-year loan term. You also have the option between a fixed- or adjustable-rate mortgage.

15- or 30-year term

The less time you’re paying interest, the less interest you’ll pay. Shorter-term loans also come with lower interest rates. So choosing the 15-year FHA mortgage is a great way to save money — but only if you can afford it.

The catch is that payments on a 15-year fixed-rate mortgage are much higher. That’s because you need to pay off the same loan amount in half the time.

Check your options for both the 30- and 15-year FHA loan. If you can afford monthly mortgage payments on a 15-year loan, it’s certainly worth considering. But if not, you’re in good company along with the majority of Americans who use 30-year mortgages.

Fixed- or adjustable-rate

Adjustable-rate mortgages (ARMs) pretty much always have lower initial mortgage rates than fixed-rate loans.

In fact, if you look at average rates since 2005, ARM rates have typically been about 0.6% lower than fixed mortgage rates. So what’s going on here?

Well, that initial ARM rate — the one you’ll see advertised— is fixed only for a set period.

A 5/1 ARM has a fixed rate for five years, a 7/1 ARM for seven years, and a 10/1 ARM for 10 years. The “1” in each case means the rate can change every one year after the initial fixed period ends.

That means while you start out with a lower interest rate and payment, both could increase later on if rates start to rise. These loans are a lot riskier than fixed-rate mortgages, which guarantee your rate and the monthly payment will stay the same.

An adjustable-rate FHA mortgage is typically only best if you’re certain you’ll move or refinance before the initial fixed-rate period expires.

FHA refinance rates

Typically, FHA rates are the same or similar whether you’re buying a home (a purchase mortgage) or refinancing.

So, if you’re seeing FHA rates lower than the one you’re currently paying, it’s worth exploring your refinance options.

There are two main refinance programs for FHA homeowners:

  • FHA Streamline Refinance — Let’s you refinance an existing FHA loan to a new one with a lower interest rate and monthly payment. “Streamlined” means there’s limited paperwork; no home appraisal is required, and the lender may not need to verify your credit, income, or employment. Learn more about the FHA Streamline program here
  •  FHA cash-out refinances — The FHA cash-out loan allows you to tap your home equity by taking out a new mortgage for more than you currently owe on the home. You can learn more about the FHA cash-out program here

Many borrowers think twice before using the FHA cash-out refinance because there’s another good option for FHA homeowners with lots of equity.

If you have more than 20% equity in your home — and a credit score above 620 — you could potentially use a conventional cash-out refinance instead. You might walk away with a check
in hand and eliminate mortgage insurance payments.

Verify your refinance eligibility (Jan 8th, 2021)

FHA mortgage rates vs. conventional loan rates

FHA mortgage rates are typically lower than conventional loan rates, or at least very close to them. But it’s hard to compare conventional and FHA interest rates on equal footing because of the difference in mortgage insurance.

FHA mortgage insurance premium (MIP) costs the same amount for every borrower: a 1.75% upfront fee (typically added to the loan amount) and a 0.85% annual fee (paid monthly).

But conventional private mortgage insurance (PMI) and the interest rate itself are charged on a sliding scale: the bigger your down payment and the higher your credit score, the less you’re going to pay.

That means someone with a low down payment but very high credit could likely get a low PMI rate and save money compared to an FHA loan. But someone with the same down payment and bad credit could pay 1.25% of their loan balance per year for PMI — more expensive than FHA’s 0.85%.

LoanRateMortgage insurance (MI)Rate + MIPrincipal, Interest & MI Payment
Conventional (good credit)3.0%0.50%3.50%$1,160
Conventional (lower credit)3.25%1.25%4.25%$1,350

Payment assumes $250,000 loan. Rates are for example purposes only. Your rate will be different.

Be sure to compare all your loan options. If your credit is high enough to qualify for a conventional mortgage (620+), look at the total cost of interest and fees compared to an FHA loan, and choose the one with the best combination for you.

Your loan officer can help you compare loan types and find the best option.

FHA mortgage rates vs. USDA and VA loan rates

FHA loans aren’t the only mortgages backed by the federal government. There are two other types:

  1. VA loans – available to veterans, current service members, and some very exclusive and closely related groups, such as surviving spouses of those killed or missing in action. Backed by the Department of Veterans Affairs (VA)
  2. USDA loans – Available to homebuyers with average or below-average income for their area who want to buy in designated rural census tracts. Backed by the U.S. Department of Agriculture (USDA)

Like the FHA loan program, USDA and VA loans have lenient requirements and low-interest rates thanks to their federal backing.

The big difference: neither program requires a down payment, whereas FHA mortgages require at least 3.5% down.

If you meet the eligibility guidelines for VA or USDA financing, these programs are definitely worth looking into further.

APRs and loan estimates

One trick when assessing which loan is best for you is to look at the annual percentage rate (APR) on each offer rather than the mortgage rate alone.

APR accounts for the total cost of a mortgage loan, including PMI or MIP mortgage insurance. It’s a more holistic estimate of what you’d pay per year.

But an even better way to see the reality behind your rates is to compare Loan Estimates. Lenders are legally obliged to send one of these to each applicant. And you’ll want several to assess the different deals you’re offered.

All Loan Estimates use the same format so you can easily compare them side by side. And page 3 is often the most revealing; it tells you precisely how much you’ll pay in the first five years of the loan, and how much of that will go to reducing your mortgage balance, as opposed to interest payments and mortgage insurance premiums.

Find your lowest rate (Jan 8th, 2021)

FHA mortgage rates FAQ

Do FHA loans have higher or lower interest rates?

FHA loan rates are usually the same or lower than conventional mortgages. But they tend to be a little higher than those for VA and USDA loans. Of course, interest rates vary by lender. And yours might be higher or lower than average depending on your personal finances. So be sure to shop for the best offer.

Why is the APR higher on an FHA loan?

Annual percentage rate (APR) measures the total cost of your loan each year, including mortgage interest and other loan costs spread across the loan term. Because FHA loans have high loan costs in the shape of mortgage insurance premiums, their APRs tend to be higher than other loan types.

Does my credit score affect FHA mortgage rates?

A better credit score will almost always help you qualify for a lower mortgage rate. However, a credit will have less of an impact on FHA mortgage rates than it does on conventional loan rates.

Do FHA interest rates vary by a lender?

FHA mortgage rates can vary hugely from one lender to the next. Remember, FHA mortgages are backed by the federal government, but offered by private mortgage lenders. Those lenders have control over the rates they offer. To find your best rate, you need to shop for a lender offering competitive rates for your situation at the time you apply. That typically involves getting estimates from at least 3 lenders (the more, the better).

Is an FHA mortgage a good idea?

Thanks to their lenient requirements, FHA loans are a great way for first-time home buyers and lower-credit borrowers to achieve homeownership. If your credit score is in the 580-620 range, an FHA loan may be your only choice. But if you have a higher score, be sure to compare other loan options — like a conventional loan — paying special attention to the cost of mortgage insurance.

What’s the downside of an FHA loan?

That’s easy: it’s mortgage insurance. The annual rate isn’t too bad. But you have to keep paying it until you refinance to a different type of loan, move home, or finish paying off your mortgage. With conventional loans, you can usually stop paying it once you reach 20% home equity without any hassle.

What’s better, an FHA loan or conventional?

That depends on your circumstances. If your credit’s only fair and your down payment small, an FHA loan can initially be less costly. Many home buyers start with an FHA loan and refinance to a conventional loan when it makes sense for them to do so.

Which lender has the lowest FHA mortgage rates? 

That varies from day to day – and sometimes from hour to hour. The only way to be sure is to research the lowest rates online and get quotes from multiple lenders.

Verify your new rate (Jan 8th, 2021)

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Bad Credit

Is The No Credit Check Loan The Best Option For You? | Branded Voices



If you need extra cash and have considered applying for a loan even with a bad credit score, you might have already heard about the no credit check loan.

Image by Bermix Studio 

Many people opt for a no credit check loan as their last resort. Like any other loan options, a no credit check loan has its pros and cons. Knowing if this is the best option for you allows you to go consider both its advantages and disadvantages. 

But is it your best option? Is there another way to acquire cash without looking into your credit record?

The Advantages

Here are the other advantages of a no-credit loan:

No Credit Checks

You are considering this loan option because the lender will not bother to check your credit report. It doesn’t matter whether you have a good or a bad credit score as long as you are eligible and can comply with their requirements. 

This benefit is one reason why this loan option attracts many borrowers, especially those who don’t have an impressive credit score and those who are still building their credit records.

Other loan options will require you to provide a good reason why you are acquiring the loan. 

For example, lenders will ask you how you will use the loaned money aside from knowing your capability to repay the money you owe.  But with the no credit check loan, lenders will ask you this kind of question during your application. 

The Disadvantages 

Just like any other options available out there for you, a no credit check loan also has its disadvantages. These things may be huge factors for some consumers, while to others, they’re just minor inconveniences you need to deal with. 

Higher Interest Rates

One of the most common and obvious disadvantages of a no credit check loan is its higher interest rate. Since the lenders will not bother looking at your credit history and rating, they will impose a higher interest rate on your loan. 

The higher interest rates imposed are due to risks they take in lending you their money without even knowing if you can pay it back. This is a common rule for all lenders who offer a no credit check loan. 

Required a Minimum Loan Amount 

If you only need a small amount, a no credit check loan may not be the best option for you. Lenders require a minimum loan amount when you apply for a no credit check loan. Most personal loans with no credit check will require you to loan a higher amount than other loan options such as payday loans and single-payment loans. 

May Require A Collateral

Lenders may require you to have collateral as an assurance for the money you are borrowing from them. It is also to secure their part if ever you cannot pay back the cash you borrowed from them. If you default on your loan, the lender will forfeit the collateral. Collateral can be in the form of any valuable assets such as a house, vehicles, and jewelry.

Quick Process 

Another positive thing when acquiring a personal loan with no credit check is the speedy process. You can get the money in just a few minutes or hours as long as you comply with all of their requirements and are eligible for the loan.

Reminders Before Applying for This Loan 

There are things that you should watch out for when opting for this loan type, especially if you do it online, such as:

  • Watch Out For Fake Lenders

This is the risk associated with a no credit check loan. Some criminals use this to lure their victims for phishing and identity theft. Make sure that you choose a legitimate lender and never give out personal information prematurely. It is best to ask someone you trust for a recommendation or for help with securing a loan from a trusted lender.

  • Prepare The Requirements Ahead Of Time 

It is best to prepare all the requirements before applying for the loan to help you acquire the money quickly. Check your chosen lender’s website or print ads for a list of requirements they will need. 

Even though this loan option does not require a credit check, it does not mean you are guaranteed approval. If the lender finds out that you are not eligible for a loan, your application will be denied. 


Asking yourself if a specific loan option is good for you is one of the proper ways to assess if you should apply for it or not. This practice should be observed in applying for no credit check loans and other loan types available. Remember, not all loans are suitable for you. One loan may work better for others but may not work the same for you. Hence, be prudent and choose the loan option that suits best with your financial needs.

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We believe everyone in Indian Country deserves equal access to news and commentary pertaining to them, their relatives and their communities. That’s why the story you’ve just finished was free — and we want to keep it that way, for all readers. But we hope it inspires you to make a gift of $5 or more to Native News Online so that we can continue publishing more stories that make a difference to Native people, whether they live on or off the reservation. Your donation will help us keep producing quality journalism and elevating Indigenous voices. Any contribution of any amount — big or small — gives us a better, stronger future and allows us to remain a force for change. Donate to Native News Online today and support independent Indigenous journalism. Thank you.

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Bad Credit

Learn to avoid these credit card habits before you regret making costly mistakes



Picture used for illustrative purposes only. Many still decide to confront bad credit card habits only after they are thousands of dirhams in debt.
Image Credit: Reuters

Dubai: Many still decide to confront bad credit card habits only after they are thousands of dirhams in debt. Here we discuss some lessons many regretted not learning before making mistakes that proved costly.

Although credit cards offer convenience, security, and rewards, overspending with a credit card and the interest and fees can bury you financially. So it’s important to know whether you possess such habits in the first place.

Four questions to ask yourself first

If you don’t know whether you have a bad credit card habit here are four questions to ask yourself to find out. If the answer to any of the below is yes, you are inching towards a credit card debtpile.

1. Do you pay only interest fees or minimum payments when you send in your credit card payment?

2. Have you ever paid your credit card late because you didn’t have the money for the payment?

3. Do you use your credit card when you don’t have enough cash?

4. When your issuer raises your credit limit, do you spend more because you can?

Bad credit card habits

While common mistakes include habitually paying your credit card late and taking out costly cash advances on your credit card, here are some uncommon-yet-dire mistakes that may slip under any user’s radar.

Habit #1: Missing out unauthorised or fraudulent charges

Keep in mind that one of the main benefits to reading your credit card statement is, it is one of the best ways to catch unauthorised charges and billing errors.

Don’t check your credit card statement for your balance and payment information, review the entire statement to verify your account activity.

By routinely checking your online or physical statement, you can also find out well before hand if your credit limit was lowered since you last checked – as it can change because of your credit habits or your credit history.

Habit #2: Paying only the minimum can cost you dearly

It is evidently easier to make the minimum payment and this is a habit credit card companies profit from as well.

Although paying just the minimum is more convenient than to figure how much extra you can pay towards your outstanding credit card bill, keep in mind that when you’re making only the minimum payment, you’re not making much progress toward paying off your credit card bill.

Moreover, unless you have a very low balance or a zero per cent interest promotion, you’re probably paying much more in finance charges than you have to.

Habit #3: Using your credit card more than your debit card

While it’s recommended you use your credit card to amass cashback rewards or points and also pay off your credit card balance every month, you shouldn’t opt to use your credit card over your debit card, if those aren’t the reasons why you would go about using them.

Your debit card is your direct access to the funds you should use for everyday purchases, like groceries, gas, clothing, and other expenses. If you use your credit card, it should be a decision with a plan for paying off what you’re charging on the card.

Habit #4: If you are transferring balances just to avoid payments

Although promotions like balance transfers are a widely recommended strategy to pay off a high-interest rate balance on your credit card, matter experts reveal that if you’re in the habit of pursuing such promotions to avoid paying payments on your credit card, this leads to amassing long-term debts.

Financial planners reiterate that many don’t realise that balance transfers typically have fees that will increase your overall balance if you’re never making payments toward the transfer. Moreover, if you’re making purchases on the card with such a promotion, the problem gets bigger.

Expert tips to take control of these credit card habits

Lesson #1: Pay your credit card in full each month

The best way to keep your credit utilisation ratio low and avoid costly interest charges is to pay your credit card balance in full each month – which also means you also don’t incur any large due.

It’s effective to control spending by not spending more than you can comfortably pay down each month, as this helps you reduce the likelihood of developing long-running credit card debt.

If you want to take in one step further, setting a monthly spending limit that’s well within your budget increases the chances that you’ll actually be able to zero out your monthly balance and avoid interest charges.

Lesson #2: Keep your credit utilisation ratio low

What it means by ‘credit utilisation ratio’ is essentially the link between your credit card balances and your aggregate spending limit. For example, a Dh2,000 balance on a credit card with a Dh5,000 credit limit equates to a 40 per cent credit utilisation ratio.

As a rule of thumb, your credit utilisation ratio shouldn’t exceed 40 per cent, and keep in mind that high ratios may adversely impact your credit score.

Financial advisors recommend aiming for a 30 per cent credit utilisation ratio, as that gives you some leeway to cover urgent one-off expenses, which can come unexpectedly as a result of maybe losing your job during the ongoing pandemic.

Lesson #3: Setting up customised spending alerts

If controlling your credit card spending is burdening you, it has been widely advised to set up customised spending alerts.

This will let you know when you’ve made an abnormally large payment or exceed a certain balance threshold and you also can pair these data alerts with security alerts to help flag any sham spending patterns.

Lesson #4: Using credit card rewards and points to your advantage

If you have a rewards credit card, you can use it to your advantage. If you have a pure cash back credit card, use any cash rewards you receive to put toward your account balance or directly deposit it into your savings account.

Alternatively, if you have a rewards points credit card, you can use your rewards to buy discounted gift cards to the stores you know, which will help save on future purchases without having to use your credit card.

If not, you could always redeem your reward points for cash redemption to put into savings or towards your account. However, ensure you know when your rewards expire to get the most out of them financially.

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When Can I Get an Auto Loan After a Repo?



There’s nothing saying you can’t apply for an auto loan immediately after a repo, but the tough part is actually being able to qualify for the loan. Since many auto lenders don’t approve borrowers with a repo that’s less than a year old, you may have to consider in-house financing.

Repossessions and Your Next Car Loan

Unfortunately, most traditional auto lenders don’t work with borrowers that have a recent repo on their credit reports. When we say traditional, we’re referring to lending institutions such as banks, credit unions, online lenders, and the captive lenders of some automakers. These lenders often require a good credit score and clean credit reports.

Where does that leave you? Well, likely in-house financing is the next logical step if you need a car loan after a repossession.

More on In-House Financing

Buy here pay here (BHPH) dealerships use in-house financing. This way of auto financing involves working with the dealer who’s also your lender. There’s no need to find a third-party lender or preapproval – the dealer takes care of all that. This setup can be convenient, and often, borrowers are able to walk away with a vehicle the same day they first set foot on the lot.

Since these dealers may not check your credit reports to determine your eligibility for auto financing, your recent repossession generally isn’t an issue. If you can meet income requirements, prove you have stable work, secure auto insurance, and prove your identity, you might get into a vehicle after a repo with in-house financing.

Here are a few more details on in-house financing:

  • Used cars only – BHPH dealers only offer used vehicles. However, used cars are a good option for bad credit borrowers. They’re almost always less expensive than a brand-new car, and affordable is a good price when you need to get back on your feet after a repo.
  • Anticipate a higher interest rate – Without a credit check, lenders are taking a risk approving a car loan without knowing much about your credit history. To make up for this, they tend to assign higher interest rates. A high interest rate may be considered a good trade-off for an auto loan with bad credit in many cases, especially if you heavily rely on a vehicle to get by.
  • Credit repair may not be an option – If you get an auto loan with a lender that doesn’t check your credit, it’s a possibility that your on-time payments aren’t going to be reported to the credit bureaus. If you want to repair your credit with a car loan, ask the lender about their credit reporting practices before you sign on the dotted line.
  • Down payments are required – Few things are certain in the auto lending world, but one thing you can count on is needing a down payment if your credit is less than perfect. BHPH dealers often require a down payment of up to 20% of the vehicle’s selling price.
  • Prepare your documents – While a BHPH dealer may not check your credit, they’re likely to ask about your income and possibly your work history. You need proof of income to qualify for a car loan, no matter what lender you work with, so prepare at least a month of computer-generated check stubs. If you don’t have W-2 income, have copies of your last two to three years of tax returns.

Looking Forward After a Repo

When Can I Get a Car After a Repo?After one year, your auto loan options open up a little bit more and you’re more likely to qualify for a subprime car loan. Subprime lenders are equipped to assist bad credit borrowers. These lenders offer you a chance for credit repair because they report their loans and work with poor credit borrowers.

If you need a vehicle quickly, a BHPH dealership could be your first step in getting back on the road. Once some time has passed, and your repossession loses some impact on your credit reports, you can try for an auto loan that has the potential to repair your credit.

Here at Auto Credit Express, we know a thing or two about bad credit auto loans, and we have a nationwide network of dealerships that assist bad credit borrowers. We aim to match consumers to dealers in their local area that help with credit challenges. If you’re in need of auto financing, start right now by filling out our free auto loan request form. We’ll look for a dealer in your local area at no cost and with no obligation.

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