Credit: Marje/Getty Images; Illustration by Issiah Davis/Bankrate
FHA loans — those insured by the Federal Housing Administration — come with more flexible financial requirements than conventional loans, making them appealing to first-time homebuyers and others with lower income or credit scores. While the FHA sets eligibility requirements, however, lenders can set tighter qualifications — and loan interest rates can vary significantly.
Bankrate has made shopping for FHA mortgages easier for you by reviewing dozens of mortgage lenders based on several key criteria. Here’s our guide to the best FHA mortgage lenders in 2024.
Bankrate’s picks for best FHA mortgage lenders
| FHA mortgage lender | Bankrate rating | Minimum credit score | Minimum down payment |
|---|---|---|---|
| Veterans United Home Loans | 4.9/5 | Undisclosed for FHA loans | 3.5% for FHA loans |
| Bethpage Federal Credit Union | 4.9/5 | 500 for FHA loans | 3.5% for FHA loans |
| Wells Fargo Home Mortgage | 4.8/5 | Undisclosed for FHA loans | 3.5% for FHA loans |
| U.S. Bank | 4.8/5 | Undisclosed for FHA loans | 3.5% for FHA loans |
| Old National Bank | 4.6/5 | 640 for FHA loans | Undisclosed |
Veterans United Home Loans
Learn morein our Bankrate review
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Veterans United Home loans consistently receives high marks from customers on Bankrate (five stars out of more than 3,600 testimonials as of this review), as well as accolades from J.D. Power. This, along with its high scores for affordability and nationwide availability make it our top pick for an FHA mortgage lender in 2024.
Bethpage Federal Credit Union
Learn morein our Bankrate review
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Bethpage is an easy-to-join credit union that offers competitive rates and widespread near-national availability.
Wells Fargo Home Mortgage
Learn morein our Bankrate review
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Wells Fargo scores high for competitive interest rates, displaying estimated rates and fees online and the widespread availability of its mortgages.
U.S. Bank
Learn morein our Bankrate review
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U.S. Bank stands out by offering several forms of homebuying assistance, including grants and credits to help with closing costs or your down payment. Coupled with its nationwide availability, this makes U.S. Bank a top choice for FHA borrowers.
Old National Bank
Learn morein our Bankrate review
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Old National Bank offers down payment and closing cost assistance in some states, lists competitive rates online and generally has lower origination fees than average.
Qualifications for FHA loans
Here are the basic requirements for an FHA loan. You must:
- Borrow no more than $498,257 for a one-unit property in most areas; you can find your area’s loan limit here
- Carry a credit score of at least 580 with a 3.5 percent down payment, or as low as 500 with a 10 percent down payment
- Have no higher than a 43 percent debt-to-income (DTI) ratio
- Provide proof of employment from the past two years
- Wait one year after a Chapter 13 bankruptcy, two years after a Chapter 7 bankruptcy and three years after a foreclosure, if applicable
How to find an FHA mortgage lender
The FHA doesn’t make loans directly; instead, you’ll get an FHA loan from an FHA-approved mortgage lender. Many types of mortgage lenders, including banks and online companies, offer these loans. To find one:
- Ask your real estate agent. Your agent might know of lenders that offer FHA loans. Just be aware: You are never obligated to work with the lender your agent recommends.
- Use HUD’s FHA lender search tool. The search function allows you to search for FHA lenders by state, county and zip code.
- Explore options with an online comparison tool. Bankrate presents customized FHA loan rate quotes based on your needs and financial situation.
Who are the largest FHA lenders in the U.S.?
| FHA mortgage lender | Loan originations in 2022 | Loan volume in 2022 |
|---|---|---|
| *American Advisors Group (AAG) is a reverse mortgage lender. Source: Home Mortgage Disclosure Act data, aggregated by LendingPatterns | ||
| Rocket Mortgage | 73,003 | $16.1 billion |
| United Wholesale Mortgage | 47,735 | $15.5 billion |
| LoanDepot | 25,288 | $7.1 billion |
| Fairway Independent Mortgage | 23,158 | $6.2 billion |
| Caliber Home Loans | 20,127 | $5.8 billion |
| CrossCountry Mortgage | 20,009 | $5.5 billion |
| Freedom Mortgage | 17,217 | $4.2 billion |
| American Advisors Group (AAG)* | 15,538 | $2.5 billion |
| DHI Mortgage Company | 15,127 | $5.1 billion |
| Pennymac | 12,930 | $3.1 billion |
How we chose the best FHA mortgage lenders
To determine the best FHA mortgage lenders, Bankrate evaluates more than 80 lenders for factors relating to affordability, availability and customer experience, assigning each a Bankrate Score out of five stars. Based on this methodology, the best FHA mortgage lenders generally have a Bankrate Score of 4.6 stars or higher. Note: The Bankrate Score considers a mortgage lender’s products and services only; it is not a reflection of a lender’s internal operations or practices.
FAQs about FHA loans
No, FHA loans can be used by both first-time homebuyers and repeat homebuyers. They appeal more to first-timers due to their lower income, credit score and down payment requirements.
FHA loans make homeownership more accessible to borrowers with lower credit scores, moderate income or limited savings. These mortgage products come with fixed interest rates, making your monthly mortgage payment more predictable. You could also qualify for a more competitive rate than you would with a conventional loan, even if you have less than perfect credit.
