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Best Lenders for FHA Loans in March 2024

FHA loans have down payment requirements as low as 3.5%. Compare some of the top FHA lenders to find the right fit for your needs.

Barbara Marquand
By
Last updated on March 1, 2024
Edited by
✅ Fact checked and reviewed
Jeanette Margle
Edited by
✅ Fact checked and reviewed

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NerdWallet's mortgage content, including articles, reviews and recommendations, is produced by a team of writers and editors who specialize in home lending. Their work has appeared in The Associated Press, USA Today, The Washington Post, MarketWatch, Newsweek and many other national, regional and local publications. They have been cited in publications including The Wall Street Journal, and appeared on NerdWallet's "Smart Money" podcast as well as local TV and radio.

Best Lenders for FHA Loans in March 2024

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Lender
NerdWallet Rating
Min. credit score
Min. down payment
Learn more
NBKC

NBKC: NMLS#409631

Top 3 most visited 🏆
Learn more
at NBKC
at NBKC
FHA loans
Best for rate transparency

620

3.5%

Guaranteed Rate

Guaranteed Rate: NMLS#2611

Learn more
at Guaranteed Rate
at Guaranteed Rate
5.0
/5
FHA loans
Best for first-time home buyers

580

3.5%

Rocket Mortgage, LLC

Rocket Mortgage, LLC: NMLS#3030

5.0
/5
FHA loans
Best for digital convenience

580

3.5%

Bethpage Federal Credit Union

Bethpage Federal Credit Union: NMLS#449104

Learn more
at Bethpage Federal Credit Union
at Bethpage Federal Credit Union
5.0
/5
FHA loans
Best for credit union lending

580

3.5%

Learn more
at Bethpage Federal Credit Union
at Bethpage Federal Credit Union
Wintrust Mortgage

Wintrust Mortgage: NMLS#449042

LEARN MORE
on NerdWallet
4.5
/5
FHA loans
Best for rate transparency

N/A

3.5%

LEARN MORE
on NerdWallet

Explore all of our lender picks by category

NBKC
Learn more
at NBKC
at NBKC
NBKC

NBKC: NMLS#409631

5.0
FHA loans
NerdWallet rating
Min. credit score

620

Min. down payment

3.5%

Why We Like ItGood for: borrowers who want low FHA mortgage rates and fees and an online experience with phone or chat support.
Pros
  • Offers FHA purchase, streamline and cash-out refinance loans.
  • Offers low rates and fees for FHA loans compared with other lenders, according to the latest federal data.
  • Displays customized rates, with fee estimates, without requiring contact information.
Cons
  • Branches for in-person service are limited to the Kansas City metro area.
Read Full Review
Guaranteed Rate

Guaranteed Rate: NMLS#2611

5.0
Min. credit score

580

Min. down payment

3.5%

Why We Like ItGood for: borrowers seeking a solid variety of FHA loan types, including FHA renovation loans.
Pros
  • Displays detailed sample rates for many of its loan products.
  • Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
  • Offers a variety of FHA loans, including renovation mortgages.
  • Was among the top 10 lenders by loan volume for FHA mortgages in 2022, according to the latest federal data.
Cons
  • Lender's "Same Day Mortgage" offer not available for FHA loans.
Rocket Mortgage, LLC
Learn more
at Rocket Mortgage, LLC
at Rocket Mortgage, LLC
Rocket Mortgage, LLC

Rocket Mortgage, LLC: NMLS#3030

5.0
Min. credit score

580

Min. down payment

3.5%

Why We Like ItGood for: borrowers who appreciate a fully digital home loan experience with FHA mortgage rates lower than other lenders’.
Pros
  • Streamlined online process with document and asset retrieval capabilities, as well as the ability to edit your preapproval letter.
  • FHA mortgage interest rates are on the low side compared to other lenders, according to the latest federal data.
  • Was the top lender by loan volume for FHA mortgages in 2022, according to the latest federal data.
Cons
  • Origination fees for FHA loans are on the high side compared with other lenders, according to the latest federal data.
Bethpage Federal Credit Union
Learn more
at Bethpage Federal Credit Union
at Bethpage Federal Credit Union
Bethpage Federal Credit Union

Bethpage Federal Credit Union: NMLS#449104

5.0
Min. credit score

580

Min. down payment

3.5%

Why We Like ItGood for: borrowers seeking a credit union with lower-than-average rates and fees for FHA loans.
Pros
  • Has a fully online mortgage application and a highly rated mobile app.
  • Offers financing for co-ops, a type of home that’s common on the East Coast.
  • FHA rates and fees are on the low side, according to the latest federal data.
Cons
  • In-person service available only on Long Island, New York.
  • Customized rates not available online.
Wintrust Mortgage
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on NerdWallet
Wintrust Mortgage

Wintrust Mortgage: NMLS#449042

4.5
Min. credit score

N/A

Min. down payment

3.5%

Why We Like ItGood for: Borrowers wanting to compare a variety of loan products, including FHA renovation loans, and use online tools to apply for a mortgage and track progress.
Pros
  • Offers a broad assortment of mortgages, including FHA renovation loans.
  • Participates in first-time home buyer assistance programs in Illinois and Wisconsin.
  • Offers online conveniences to apply for a mortgage and track progress.
Cons
  • Sample rates for some loan products are available only by contacting a loan officer.
  • No online chat function available on website.
Bank of America
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Bank of America

Bank of America: NMLS#399802

4.5
Min. credit score

600

Min. down payment

3.5%

Why We Like ItGood for: borrowers looking for a bank with lower-than-average FHA rates.
Pros
  • Offers down payment and closing cost assistance programs.
  • May give existing customers a discount on mortgage lender origination fees.
  • Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
Cons
  • Doesn't offer FHA renovation loans.
Pennymac
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on NerdWallet
Pennymac

Pennymac: NMLS#35953

5.0
Min. credit score

580

Min. down payment

3.5%

Why We Like ItGood for: borrowers who want to rate-shop online and lock in a rate while shopping for a home.
Pros
  • Dedicates a significant portion of its business to FHA lending.
  • Displays custom rate quotes based on home value, down payment, ZIP code and credit score range.
  • “Lock & Shop” lets you secure a rate for up to 90 days, even if you don’t have a purchase contract yet.
  • FHA interest rates are on the lower end, according to the latest federal data.
Cons
  • Origination fees for FHA loans are on the higher end, according to the latest federal data.
  • Doesn't offer FHA renovation loans.
Mr. Cooper
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on NerdWallet
Mr. Cooper

Mr. Cooper: NMLS#2119

4.5
Min. credit score

N/A

Min. down payment

3.5%

Why We Like ItGood for: borrowers seeking an online FHA lender with lower than average rates.
Pros
  • Has a robust digital experience and mobile app.
  • FHA mortgage rates are lower than average, according to the latest federal data.
  • Offers FHA streamline refinance loans.
Cons
  • Requires a call or email for personalized rates.
  • FHA origination fees are on the higher end, according to the latest federal data.
PNC
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on NerdWallet
PNC

PNC: NMLS#446303

5.0
Min. credit score

620

Min. down payment

3.5%

Why We Like ItGood for: borrowers seeking a bank offering FHA purchase and refinance loans with lower-than-average lender fees and interest rates.
Pros
  • Lender fees and interest rates for FHA mortgages are lower than average, according to the latest federal data.
  • Easy to get custom mortgage rate quotes on its website.
  • Offers FHA streamline and cash-out refinance mortgages.
Cons
  • Doesn't offer FHA renovation mortgages.
  • In-person service is not available in every state.
Flagstar
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on NerdWallet
Flagstar

Flagstar: NMLS#417490

4.5
Min. credit score

580

Min. down payment

3.5%

Why We Like ItGood for: borrowers who want a wide range of choices, including FHA renovation loans and refinance mortgages, and view customized rates online.
Pros
  • Offers a wide range of loan types and products, including FHA renovation loans and FHA streamline and cash-out refinance mortgages.
  • Borrowers can apply and track loan status online.
  • Offers customized online rate quotes with monthly payment estimates.
Cons
  • Does not offer FHA energy efficient mortgages.
US Bank
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on NerdWallet
US Bank

US Bank: NMLS#402761

4.5
Min. credit score

N/A

Min. down payment

3.5%

Why We Like ItGood for: borrowers seeking a bank with lower-than-average lender fees for FHA loans.
Pros
  • Lender fees for FHA loans are on the lower end, according to the latest federal data.
  • Offers FHA streamline refinance mortgages.
  • Lists sample mortgage rates and APRs for many of its products online, including a breakdown of estimated monthly payments.
Cons
  • Sample mortgage rates online are not customizable by credit score.
Truist
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on NerdWallet
Truist

Truist: NMLS#399803

4.5
Min. credit score

620

Min. down payment

3.5%

Why We Like ItGood for: borrowers looking for FHA purchase or refinance mortgages with lower-than-average interest rates.
Pros
  • Offers FHA streamline and FHA cash-out refinance loans.
  • FHA mortgage rates are lower than industry average, according to the latest federal data.
  • Posts sample mortgage rates on its website.
Cons
  • Customized rates by credit score aren't available without contacting the lender.
  • Mortgages aren’t available in all 50 states.

Qualifying for an FHA loan

To qualify for an FHA loan, you'll need a credit score of at least 580 for the lowest FHA down payment of 3.5% and a score of 500 with a 10% down payment. FHA loans allow a debt-to-income ratio of up to 43%, and in some cases there may be a bit more flexibility.

In addition to money for your down payment, you'll also need funds to cover FHA closing costs and an upfront mortgage insurance premium, which for FHA borrowers is 1.75% of the loan amount. Both the upfront mortgage insurance premium and the closing costs can be rolled into the total amount of the mortgage.

Bear in mind that these are the Federal Housing Administration's qualification guidelines; individual lenders can impose stricter rules. That's one reason it's worth comparing several lenders. You can start with the lenders we have here, but you can also browse the U.S. Department of Housing and Urban Development's searchable list of approved FHA lenders.

Are FHA loans only for first-time home buyers?

You do not need to be a first-time home buyer to use an FHA loan. Lower minimum credit score and down payment requirements make FHA loans attractive to first-time home buyers, but current homeowners are eligible, too.

Can you get an FHA loan if you have student loans?

You can get an FHA loan if you have student loan debt, as long as you meet FHA debt-to-income requirements. FHA student loan guidelines state that lenders must include all student loans when calculating a borrower's debt-to-income ratio. If your payments are currently deferred, your lender will consider your "monthly obligation" to be 0.5% of your total student loan balance.

More from NerdWallet

Last updated on March 1, 2024

Methodology

The star ratings on this page reflect each lender's performance in NerdWallet’s FHA loans category. We scored the category and chose lenders for this page using the following methodology:

NerdWallet reviewed more than 50 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (measured among lenders with at least a 1% market share), lenders with significant online search volume and those that specialize in serving various audiences across the country. We rated them on criteria including rate transparency, loan types offered, ease of application and more.

Some of the providers are NerdWallet partners, but this did not influence our selections.

All reviewed mortgage lenders that offer FHA loans were evaluated based on (1) the portion of their business dedicated to FHA lending, (2) their average FHA loan origination fees and mortgage rates, (3) the range of FHA loans offered, (4) their rate transparency and (5) the ease of their online application. The highest scoring lenders appear on this page.

NerdWallet solicits information from reviewed lenders on a recurring basis throughout the year. All lender-provided information is verified through lender websites and interviews. We also utilized 2022 HMDA data for origination volume, origination fee, average interest rate and share-of-product data.

To recap our selections...

NerdWallet's Best Lenders for FHA Loans in March 2024

  • NBKC: Best for rate transparency
  • Guaranteed Rate: Best for first-time home buyers
  • Rocket Mortgage, LLC: Best for digital convenience
  • Bethpage Federal Credit Union: Best for credit union lending
  • Wintrust Mortgage: Best for rate transparency
  • Bank of America: Best for customer satisfaction
  • Pennymac: Best for FHA mortgage rates
  • Mr. Cooper: Best for FHA mortgage rates
  • PNC: Best for overall FHA loan experience
  • Flagstar: Best for overall mortgage lending
  • US Bank: Best for mobile app
  • Truist: Best for first-time home buyers

Frequently asked questions

  • To apply, you'll work with a Federal Housing Administration-approved lender. Many banks, credit unions and mortgage lenders offer FHA loans.

  • FHA loan preapproval is similar to preapproval for other mortgage types, though you have to work with an FHA-approved lender. You'll need to provide documentation of your financial status, which can include employment history, bank account information and any current loan payments. Getting a mortgage preapproval from more than one FHA lender lets you compare not only rates but also all the fees and conditions each lender would apply.

  • FHA mortgage rates and fees vary by lender, so compare at least three FHA lenders to find the best deal. Then run the numbers with an FHA mortgage calculator to estimate your monthly payments. It's also important to remember that while the FHA sets minimum qualifications, lenders can require higher credit scores or lower debt-to-income ratios.

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