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Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.

If you aren’t sure if you can qualify for a mortgage because your credit isn’t great, you might be able to buy a home with an FHA mortgage. These mortgages are geared toward first-time homebuyers and those with poor credit or lower incomes.

FHA loans are mortgages backed by the Federal Housing Administration. They typically require credit scores of at least 580 with a 3.5% down payment, or sometimes as low as 500 with a 10% down payment. They also tend to have better interest rates than conforming loans.

The best FHA lenders offer additional benefits, such as an easy online application, hybrid or digital closing options, or the ability to apply with non-traditional credit (such as proof of on-time rent or utility payments) if you don’t have a traditional credit score.

Best lenders for FHA loans

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Editors’ Rating

4.25/5

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Editors’ Rating

4.5/5

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Editors’ Rating

4.5/5

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Editors’ Rating

4.5/5

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Editors’ Rating

4.5/5

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Best overall FHA lender

New American Funding FHA mortgage


Minimum Down Payment

3.5%


Types of Loans Offered

Conforming, jumbo, FHA, VA, USDA, reverse, buydown loan, I CAN mortgage,

Bankrate New American Funding FHA mortgage

New American Funding FHA mortgage


Minimum Down Payment

3.5%


Types of Loans Offered

Conforming, jumbo, FHA, VA, USDA, reverse, buydown loan, I CAN mortgage,


Minimum Down Payment

3.5%


Types of Loans Offered

Conforming, jumbo, FHA, VA, USDA, reverse, buydown loan, I CAN mortgage,

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*You may be able to get an FHA loan from this lender with a score below 580 with compensating factors.

If you don’t have a credit score, you can use non-traditional credit to apply with this lender. You may also still be able to get an FHA loan with New American Funding if you have recent negative credit events (such as a late payment) on your credit report. 

New American Funding has an A+ rating from the BBB. It’s not available to residents of Hawaii or New York.

Best for low credit scores

Bankrate Carrington Mortgage Services FHA mortgage

Carrington Mortgage Services FHA mortgage


Minimum Down Payment

3.5%


Types of Loans Offered

Conforming, FHA, USDA, VA, Carrington Flexible Advantage

Bankrate Carrington Mortgage Services FHA mortgage

Carrington Mortgage Services FHA mortgage


Minimum Down Payment

3.5%


Types of Loans Offered

Conforming, FHA, USDA, VA, Carrington Flexible Advantage


Minimum Down Payment

3.5%


Types of Loans Offered

Conforming, FHA, USDA, VA, Carrington Flexible Advantage

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Carrington accepts scores as low as 500 on its FHA loans and has flexible requirements for borrowers with “less than perfect” credit. 

Carrington has an A+ rating from the BBB. It’s unavailable to residents of Massachusetts and North Dakota.

Best for those with no credit history

Bankrate Guild Mortgage FHA mortgage

Guild Mortgage FHA mortgage


Minimum Down Payment

3.5%


Types of Loans Offered

Conforming, jumbo, FHA, USDA, VA, reverse, renovation, manufactured, bridge, energy-efficient, doctor, Complete Rate

Bankrate Guild Mortgage FHA mortgage

Guild Mortgage FHA mortgage


Minimum Down Payment

3.5%


Types of Loans Offered

Conforming, jumbo, FHA, USDA, VA, reverse, renovation, manufactured, bridge, energy-efficient, doctor, Complete Rate


Minimum Down Payment

3.5%


Types of Loans Offered

Conforming, jumbo, FHA, USDA, VA, reverse, renovation, manufactured, bridge, energy-efficient, doctor, Complete Rate

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Guild Mortgage offers a hybrid closing option that lets you sign documents ahead of time and keep your closing appointment quick. It can also help connect you with down payment assistance in your area.

Guild has an A- rating from the BBB. It’s unavailable to residents of New Jersey or New York.

Best for an easy online experience

Bankrate Rocket Mortgage FHA mortgage

Rocket Mortgage FHA mortgage


Minimum Down Payment

3.5%


Types of Loans Offered

Conforming, jumbo, FHA, VA

Bankrate Rocket Mortgage FHA mortgage

Rocket Mortgage FHA mortgage


Minimum Down Payment

3.5%


Types of Loans Offered

Conforming, jumbo, FHA, VA


Minimum Down Payment

3.5%


Types of Loans Offered

Conforming, jumbo, FHA, VA

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Rocket Mortgage was ranked as the top lender for customer satisfaction from J.D. Power for 11 consecutive years, and ranked No. 2 in 2021. It offers a simple online experience and live online chat with a mortgage professional. But it doesn’t accept non-traditional credit — you must have a traditional credit score of at least 580 to qualify

Rocket Mortgage has an A+ rating from the BBB and is available in all 50 states. 

Best for home renovations

Fairway Independent Mortgage Corporation Fairway Independent Mortgage Corporation FHA Mortgages

Fairway Independent Mortgage Corporation FHA Mortgages


Minimum Down Payment

3.5%


Types of Loans Offered

Conforming, jumbo, FHA, USDA, VA, reverse, renovation, refinance

Fairway Independent Mortgage Corporation Fairway Independent Mortgage Corporation FHA Mortgages

Fairway Independent Mortgage Corporation FHA Mortgages


Minimum Down Payment

3.5%


Types of Loans Offered

Conforming, jumbo, FHA, USDA, VA, reverse, renovation, refinance

On Fairway Independent Mortgage Corporation’s website


Minimum Down Payment

3.5%


Types of Loans Offered

Conforming, jumbo, FHA, USDA, VA, reverse, renovation, refinance

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Fairway Independent is a good option for borrowers looking to purchase a fixer-upper or those who prefer a remote closing experience. But it doesn’t show sample rates online.

This lender has an A+ rating from the BBB and is available in all 50 states.

Other mortgage lenders we considered

  • Bank of America: Bank of America offers competitive down payment assistance programs, but you’ll need at least a 640 credit score to get an FHA loan.
  • Chase: Chase is a good lender overall, but it also requires a 640 credit score.
  • Better.com: Better.com provides a smooth online experience and charges low fees, but you’ll need a minimum 620 credit score.
  • Veterans United: Although Veterans United is a strong lender that offers FHA loans, its main focus is VA loans.
  • Regions: You might like using Regions, but the bank only has branches in certain parts of the US.
  • US Bank: US Bank requires a 640 credit score to get an FHA loan.
  • Citibank: This bank received decent customer satisfaction ratings from J.D. Power, but an F rating from the BBB.
  • Paramount Bank: You might like Paramount as an online lender, but it doesn’t show customized rates on its website.
  • NBKC Bank: You’ll need at least a 640 credit score to get an FHA loan with this lender.
  • Pennymac: Pennymac requires a 620 score on its FHA loans, and it ranks low on J.D. Power’s customer satisfaction survey.
  • Flagstar Bank: This bank has received an A+ from the BBB, but J.D. Power ranks it pretty low in customer satisfaction.
  • Mr. Cooper: J.D. Power ranks Mr. Cooper as below average for customer satisfaction.
  • Caliber Home Loans: You can find lenders with better customer satisfaction ratings from J.D. Power.
  • LoanDepot: Loan Depot doesn’t provide FHA loan interest rates on its website.
  • Guaranteed Rate: Guaranteed Rate is a solid FHA lender, but in 2020 it settled allegations that it pressured underwriters into lying so that the government would insure FHA and VA loans
  • Freedom Mortgage: J.D. Power ranks Freedom Mortgage low for customer service.
  • Wells Fargo: Due to some recent scandals, Wells Fargo has received an F rating from the BBB.
  • Truist: You might like Truist, but it scored below average on J.D. Power’s annual survey.
  • PNC Bank: This is a good lender overall, but you’ll need a 620 credit score to get an FHA loan.

Methodology: How we chose the best FHA lenders for 2022

To choose the top FHA loan lenders, we looked at three main factors:

  • Credit score. FHA loans’ main appeal is that you don’t need a great credit score to qualify. While the official FHA guidelines allow for scores as low as 580 (or 500 with a 10% down payment), some lenders have higher minimum credit score requirements, which can make it difficult for some borrowers to qualify. All of the FHA lenders on our list allow scores of 580, and many will allow even lower scores with a higher down payment. Most of our lenders also have some form of flexible credit guidelines, such as letting borrowers apply with non-traditional credit or allowing borrowers to have recent negative events on their credit reports.
  • Customer satisfaction. If the lender appeared in the J.D. Power 2021 Primary Mortgage Origination Satisfaction Survey, we looked at its ranking. If it wasn’t in the survey, then we read online customer reviews.
  • Ethics. Each of our top picks received an A+ from the Better Business Bureau, which measures companies’ trustworthiness. The exception is Guild Mortgage, whose BBB profile is currently under review. We also researched and considered any scandals in the past three years.

Are these mortgage lenders trustworthy?

The Better Business Bureau grades companies based on responses to customer complaints, honesty in advertising, and transparency about business practices. Here are the BBB grades for our top mortgage lenders:

Most of our top picks have an A+ from the BBB. The exception is Guild Mortgage, which has a A- rating. The BBB says that Guild Mortgage received a A- rating due to government action against the lender. In 2020, Guild Mortgage paid the United States $24.9 million when it was accused of approving FHA mortgages for people who didn’t qualify, resulting in loan defaults.

In 2019, the US Justice Department required Rocket Mortgage’s parent company Quicken Loans to pay $32.5 million for alleged mortgage fraud. The Justice Department claimed Quicken Loans approved mortgage applications it shouldn’t have. Although Quicken Loans paid the settlement, the company never admitted to mortgage fraud.

If any of these scandals worry you, you may decide to go with one of the other lenders on our list.

Frequently asked questions

An FHA loan is a mortgage backed by the Federal Housing Administration. This means that if you default on your mortgage, the FHA will compensate your lender.

FHA loans are less risky for lenders than conventional loans, which are what you may think of as “normal mortgages.” So lenders will often approve you for an FHA loan with a lower credit score or higher debt-to-income ratio than with a conventional loan. FHA loans also come with lower interest rates.

Many lenders will approve you for an FHA loan with a 580 credit score and 3.5% down payment. You may be eligible with a credit score of 500 to 579, but you’ll need a 10% down payment.

Some lenders require higher scores than this. For example, Chase and Bank of America both require a 640 credit score, the same score needed for a conventional loan with these banks. If you have a lower score, do some research before applying for preapproval to find out which lenders accept lower scores.

Most lenders also want your debt-to-income ratio to be 43% or lower for an FHA loan, though you may be able to go higher with compensating factors. Your DTI ratio is the monthly amount you pay toward debts divided by your gross monthly income.

The rules about property types are pretty lenient. You can buy multifamily properties with up to four units with an FHA loan, or a condo or manufactured home. The home must meet certain property standards, though.

The amount you’re allowed to borrow varies by where you live and what type of property you buy. Enter your state and county information to see your borrowing limits on the US Department of Housing and Urban Development website.

Find lenders that will approve your FHA loan application at your current credit score and debt-to-income ratio. Then apply for preapproval with your favorites and compare the interest rates and fees between each one.

Think about what you need from a lender. Do you prefer to apply online? Maybe you also want to close digitally, or you’re looking for a company with live online chat features so you don’t have to wait on hold over the phone.

Decide what’s important to you and choose the lender that’s the best fit.

No, you don’t have to be a first-time homebuyer to get an FHA loan.

FHA loans are often marketed as first-time homebuyer programs because the lenient credit score and debt-to-income ratio requirements can be ideal for younger people who don’t have the most robust financial profiles yet. But you can apply for an FHA loan even if this isn’t your first time owning a home.

Mortgage and refinance rates by state

Check the latest rates in your state at the links below. 

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
Washington DC
West Virginia
Wisconsin
Wyoming



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