There are few options if you're looking to buy a home and have less-than-perfect credit or a small down payment, but an FHA loan can help.
FHA loans are backed by the Federal Housing Administration and require a 3.5% down payment for borrowers with a 580 FICO Score or a 10% down payment with a 500 credit score. Lenders typically require a 620 credit score.
Because these loans are government-sponsored, lenders tend to be more forgiving of past bankruptcies or foreclosures, and are willing to accept higher debt-to-income ratios. Like conventional loans, they are issued by commercial banks, credit unions, fintech companies and other private lenders.
CNBC Select picked the best lenders for FHA loans, based on rates, terms, availability, customer service, and other factors. (See our methodology for more information.)
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Best FHA loan lenders
- Best for customer satisfaction: Rocket Mortgage
- Best for no down payment: Guild Mortgage
- Best in-person experience: Chase Bank
- Best for low interest rates: Pennymac
- Best online experience: Rate
- Best for speedy closing: CrossCountry
- Best for first-time homebuyers: Fairway
- Best for Black and Latino borrowers: New American Funding
Best for customer satisfaction: Rocket Mortgage
Who's this for? If customer service is your priority, consider Rocket Mortgage. It was named No. 1 in mortgage servicing by J.D. Power in 2025 — the most recent year available — the 11th time it received the top ranking. The online-only lender also earned an A+ from the Better Business Bureau and 4.6 out of five stars on Trustpilot.
Standout benefits: The ONE+ loan from Rocket Mortgage allows borrowers who meet income and credit requirements to put just 1% down. Rocket will provide an additional 2%, bringing your starting equity to 3%.
- Offers a 1% down mortgage, making it a great option for first-time homebuyers who don't have enough saved up for a down payment.
- Above average scores for customer satisfaction from J.D. Power, meaning you'll be in great hands from application to closing day.
- With an average closing time of 22 days — nearly half the industry average — homeowners will be able to get the keys to their home as soon as possible.
- Rocket will give you a rebate of up to $10,000 for buying with Rocket Homes, which pairs homeowners with a real estate agent.
- No USDA mortgages, construction loans or HELOCs
- Hard credit check required for customized rate
- No physical branches
Best for no down payment: Guild Mortgage
Who's this for? Guild Mortgage's zero down loan allows eligible borrowers to qualify for an FHA loan with no down payment, compared to the 3.5% most FHA lenders require.
Standout benefits: Guild's rate-lock program lets borrowers freeze their FHA loan rate for 120 days at no extra cost. Guild also considers non-traditional credit sources, which can be helpful to homebuyers with a thin credit history.
- Offers a wide range of uncommon loans, so you're more likely to find one that fits your needs than with other lenders.
- Boasts several down payment assistance programs, making it a great lender for first-time homebuyers who may not have much saved up for a down payment.
- Some loans closes can receive a 17 day closing guarantee, which can ensure you get the keys to your home in quicker than half the average timeline.
- E-closings available so you may be able to finalize your mortgage paperwork from your couch.
- Rates are not available online
- Does not issue mortgages in New York
Best in-person experience: Chase Bank
Who's this for? If you're looking to sign your mortgage in person, Chase Bank is a great choice. It has more than 4,700 branches across 48 states and Washington, D.C, the most of any bank.
Standout benefits: Chase offers a $5,000 on-time closing guarantee. The Chase homebuyer grant allows eligible borrowers to receive up to $7,500 for closing costs or a down payment.
- Existing Chase customers can get a rate reduction
- Above-average customer satisfaction scores, meaning you're likely to get stellar service and customer service pros who are ready to answer your questions and guide you through the process
- Closing timeline guarantee so you won't have to worry about whether or not you'll close on time.
- Homebuyer grants of up to $7,500, a huge cash infusion that homebuyers can put towards closing costs and down payments.
- The Chase DreaMaker℠ loan only requires 3% down payment for qualifying homebuyers, lower than the typical 5% minimum required for a conventional mortgage, making it a great option for those who haven't saved much for a down payment.
- No USDA loans or HELOCs
- No closing guarantee for refinancing
- Chase homebuyer grant only available in select areas.
Best for low rates: Pennymac
Who's this for? If you want a low rate, apply for a Pennymac FHA loan. Its rates are usually lower than the industry average.
Standout benefits: With its BuyerReady Certification preapproval process, borrowers can get $1,000 toward closing costs. Using a real estate agent in Pennymac's Home Connect network can get you up to $9,500 back after closing.
- Borrowers can get $1,000 for closing costs with BuyerReady Certification
- Up to $9,500 available for using Pennymac Home Connect agent
- Available in all 50 states
- Borrowers can lock their rate for 90 days
- No brick-and-mortar locations
- Does not offer HELOCs
Best online experience: Rate
Who's this for? If you want a seamless online application experience, look into Rate. Its online mortgage process is top-notch for borrowers who prioritize convenience. Its streamlined process includes hybrid closings and notarizing of closing documents via video.
Standout benefits: Same-day approval is available and closing can take as little as 10 days. The OneDown Program allows eligible borrowers to put as little as 1% down, with Rate providing the other 2%, as well as a $1,000 closing cost credit.
- Approval in as little as one day, making it easy to start shopping for a home as soon as possible.
- You can fully assess whether Rate is right for you because the lender puts its rates online
- Remote closing available in some states, so you can close on a mortgage from your couch.
- Higher credit score requirements
- No USDA loans
- Does not offer home equity loans
Best for speedy closing: CrossCountry Mortgage
Who's this for? If getting into your new home ASAP is your top priority, apply for a CrossCountry Mortgage. Its FastTrack Credit Approval program allows qualified buyers to get into a new home in as few as 10 days after signing a purchase agreement, compared to an industry average of about 42 days. Loans that are not part of the FastTrack program close in an average of 21 days, according to CrossCountry, which is still much faster than average.
Standout benefits: The Smart Start program includes up to $4,000 in down payment assistance to first-time homebuyers who meet income requirements.
- $6,500 in down payment assistance
- High scores for customer satisfaction
- May be able to close within 10 days
- Higher-than-average rates
- Rates not available online
Best for first-time homebuyers: Fairway
Who's this for? If you're a first-time homebuyer looking for an FHA loan, consider Fairway. Its Community Access program provides up to $7,500 toward a down payment for first-time homebuyers in 21 cities. Recipients also receive a one-year home warranty credit.
Standout benefits: Fairway's Advantage preapproval program allows buyers to submit an underwritten approval letter with their bid, demonstrating they're good candidates and serious about buying. If financing with Advantage falls through, Fairway will either buy the house for cash or give the seller $10,000 when the property is relisted.
- Rated above average for customer satisfaction by J.D. Power, so you know help will be available if you need it.
- Offers a $7,000 closing-cost grant with no income limits in select areas, making it an ideal option for qualifying borrowers who don't have much beyond a down payment saved up.
- Offers all three types of government-insured mortgages
- Not transparent about rates and fees online
- No home equity loans or HELOCs
- Doesn’t service all of its loans
Best for Black and Latino borrowers: New American Funding
Who's this for? New American Funding is devoting billions of dollars to new housing financing for Latino and Black households. In addition to the dedicated financing, its Black Impact and Latino Focus initiatives offer educational resources and partnerships to increase homeownership within communities of color.
Standout benefits: With an NAF I Can mortgage, borrowers can set terms from eight to 30 years. In addition, if NAF fails to close on your mortgage within 14 business days, you may be eligible for a $250 lender credit to apply toward closing costs.
- Sample rates available online
- Down payment as low as 3%
- 14-business-day closing guarantee
- Offers reverse mortgages
- Low mortgage origination satisfaction score from J.D. Power
- Applications require call back from agent
- Fees not disclosed before applying
Pros and cons of FHA loans
- Smaller down payment requirement
- Lower credit score accepted
- Mortgages are assumable
- Lower loan limits than conventional loans
- Cannot be used for vacation homes or rentals
- Stricter appraisal process
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
10–30 years
620
5% for conventional loans, 3.5% for FHA loans, 0% for VA loans, 10.01% for jumbo loan
10, 15 or 30 years for fixed-term conventional loans, 30-year VA and FHA loans. Custom mortgages with fixed-rate terms from 8 to 29 years.
620 for conventional, 500 for FHA
0% for VA, 1% for RocketONE+, 3% for conventional, 3.5% for FHA, 10% to 15% for jumbo
What is an FHA loan?
An FHA loan is a mortgage backed by the Federal Housing Administration. Since they’re less risky for lenders, FHA loans typically have lower credit score and down payment requirements.
There are FHA loans with fixed and variable rates, as well as specialty loans like the FHA 203(k), which can be used for home renovations. You may also be able to take advantage of streamlined FHA refinancing, saving you a credit check and home appraisal.
FHA loans don't require private mortgage insurance, but borrowers do have to get mortgage insurance premiums (MIP), which are slightly different: You'll pay 1.75% of the loan balance up front and then have a monthly MIP, typically between 0.15% and 0.75% of the principal.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Amica offers two tiers of homeowners insurance: A standard policy and the brand's Platinum Choice plan, which covers more situations and has extended coverage for jewelry and liability. Add-on options include computer coverage, sump pump backup coverage, and dwelling replacement coverage.
Progressive doesn't underwrite its own insurance policies. Through its HomeQuote Explorer platform, however, it gathers multiple quotes from over a dozen top insurers to help you quickly compare and save.
How to qualify for an FHA loan
FHA mortgages can only be used to buy a primary residence. The property can have up to four units, as long as you live in one.
- Loan limit: $541,287 ($1,249,125 to 1,873,687 in high-cost areas)
- Credit score: 500 FICO score with 10% down or 580 with 3.5% down
- Income requirements: None
- Debt-to-income ratio: Typically 43%
Individual lenders may set additional guidelines.
FHA loan FAQs
What fees are associated with FHA loans?
Like most mortgages, FHA loans come with closing costs, typically 3% to 6% of the total loan amount. Closing costs for FHA loans include an upfront mortgage insurance premium (MIP) of 1.75% of the loan amount.
What are the benefits of an FHA loan?
One of the main benefits of an FHA loan is that borrowers can put as little as 3.5% down, which is lower than most conventional mortgage down payments. You can also qualify for an FHA loan with a credit score as low as 580 if you put 3.5% down and 500 if you put 10% down.
How much can I borrow with an FHA loan?
The loan limit for FHA loans for single-family homes rose to $541,287 in 2026. In some high-cost areas, however, the limit can range from $1,249,125 to $ 1,873,687.
Do FHA loans come with private mortgage insurance?
Instead of private mortgage insurance, FHA loans come with mortgage insurance premiums (MIP). You'll pay 1.75% of the loan balance up front, then pay a monthly MIP, typically between 0.15% and 0.75%, usually for the life of the loan. If you have a down payment of at least 10%, the MIP can be dropped after 11 years.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of mortgage products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Our methodology
CNBC Select analyzed dozens of banks, credit unions and nonbank lenders to determine which are best for FHA loans.
We focused on the following features:
FHA loan availability and market share: We favored lenders that were top FHA loan providers or ones that offered FHA-specific loan products.
Closing times: We gave more weight to lenders with shorter-than-average closing times or guaranteed an on-time closing.
Fees: The mortgage process includes origination, application and underwriting fees, as well as charges for appraisals, title insurance, attorneys and other closing costs. When possible, we noted if a lender had lower fees, discounts or waived certain fees.
Application process: We considered whether lenders offered an online preapproval and application process and whether they had physical branches for an in-person experience.
Customer service: We gave more weight to lenders that scored highly on J.D. Power's mortgage origination and servicing surveys. We also noted if they had robust customer service phone hours and a website with an online chat feature and educational resources.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Based on that criteria, our picks for the best FHA mortgage lenders are:
- For customer satisfaction: Rocket Mortgage
- For no down payment: Guild Mortgage
- For in-person experience: Chase Bank
- For low interest rates: Pennymac
- Best for online experience: Rate
- For speedy closing: CrossCountry
- For first-time homebuyers: Fairway
- For Black and Latino borrowers: New American Funding
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