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FHA mortgage rates for today
Estimate your monthly payment based on current FHA mortgage rates. Then, see how much buying a home will cost so you can start planning.
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Borrow up to $524,225 to buy a single-family, condominium, or townhome. Get a larger loan for a multi-unit property.
| Property type | FHA loan limits 2025 |
|---|---|
|
Single family, condominium, or townhome
|
$524,225
|
|
2-unit, multi-family home
|
$671,200
|
|
3-unit, multi-family home
|
$811,275
|
|
4-unit, multi-family home
|
$1,008,300
|
- The 2025 FHA loan limits apply to Illinois, Indiana, and most Florida and Tennessee counties. Some Florida and Tennessee counties have higher loan limits. Check the FHA Mortgage Limits.
- Illinois loan limits
- How to buy a 2-4 unit property
- How to buy a condo with an FHA loan
- How to buy a mixed-use property with an FHA loan
Buy a 1-to-4 unit home with a down payment of only 3.5% of the purchase price. Homeownership can be surprisingly affordable and simple.
| Property type | Minimum down payment as a percent of the purchase price |
|---|---|
|
1-to-4 units: single-family, condo, townhome, or multi-famly home
|
3.5%
|
Get the financing you need to purchase now, even if you have a few bumps in your credit history.
-
Lower credit score requirements - 580 or higher
-
Shorter waiting period after a major event such as a foreclosure
-
Easier to qualify with debt, such as student loans and credit cards
Get pre-approved for a mortgage.
A powerful pre-approval letter, signed by an underwriter, improves your chances of winning the deal.
Frequently asked questions about FHA loans
What is an FHA loan?
An FHA loan, a mortgage backed by the Federal Housing Administration (FHA), is designed to make homeownership more inclusive, particularly for first-time buyers. Compared to conventional mortgages, FHA loans offer several advantages:
- Low Down Payment: You can buy a 1-to-4-unit property with as little as 3.5% down, making it easier to save for a home.
- Lenient Credit Requirements: FHA loans are more forgiving of lower credit scores, giving buyers with less-than-perfect credit a chance to qualify.
- Higher Debt-to-Income Ratios: You may qualify for a higher loan amount, allowing you to afford more home.
These benefits help first-time buyers by reducing the upfront cost, expanding eligibility, and offering flexibility to purchase the home that fits their needs—all while providing competitive interest rates.
How much is FHA mortgage insurance?
Homebuyers pay two types of mortgage insurance when purchasing a home using an FHA loan: Upfront Mortgage Insurance Premium (UFMIP) & Monthly Mortgage Insurance Premium (MIP).
1.UFMIP is a one-time fee added to your loan amount. To calculate, multiply the loan amount by the UFMIP rate of 1.75% to get the UFMIP dollar amount. Then add the UFMIP to the base loan amount to the total loan amount.
For example, $100,000 Loan amount X 1.75% = $1,750 UFMIP + $100,000 Loan amount = $101,750 Total loan amount.
2.MIP is a recurring charge paid to the lender in monthly installments as part of your regular mortgage payments. The cost depends on the loan amount, down payment, and loan term.
To calculate, multiply the base loan amount by the MIP rate of 0.85% for a 30-year fixed-rate mortgage when your down payment is less than 5%. Then divide by 12.
For example, $100,000 Loan amount X 0.85% = $850 MIP ÷ 12 = $70.83 Monthly MIP.
Find details here: FHA mortgage insurance - How much is it? Can you cancel it?
Can the seller pay the homebuyer's closing costs?
Sellers can pay the buyer's closing costs.
It's called a seller or closing costs credit when the sellers of a property agree to credit a sum of money to the buyer at closing time. The buyer can use it to cover closing costs, reducing out-of-pocket expenses associated with purchasing a home.
Seller credits are negotiable and can be included as part of the terms of the sale if both the buyer and seller agree to them. The specifics depend on the circumstances of the sale.
Because closing costs can be high, negotiating a seller credit helps offset some or all of these costs. It's a valuable tactic, especially for first-time home buyers who want to buy now rather than wait to save enough money for closing costs.
However, seller credits have limits, and lenders have rules on how you can use them.
Avoid costly mistakes when negotiating credit from sellers: Seller Credit | Can the seller pay the homebuyer's closing costs?
See how much buying a home will cost.
Check today's mortgage rates, your monthly payment, and closing costs.
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