What are FHA mortgage rates on September 12, 2026?

FHA mortgage rates on September 12, 2026: 30-year FHA averages 6.27% (+11bp post-CPI per Mortgage Research). 15-year FHA averages 5.65% (estimate). FHA rates are typically 50-75 basis points below conventional conforming rates. With the post-CPI 30-year conventional at 6.83-7.10%, the spread to FHA has narrowed slightly as bond markets priced in the Fed hike expectation. The FHA rate remains the lowest-cost agency option for first-time buyers and borrowers with lower credit scores (Mortgage Research, September 11, 2026; HUD FHA, 2026).

What is the minimum down payment for an FHA loan?

The FHA minimum down payment is 3.5% of the purchase price for borrowers with a FICO score of 580 or higher. For borrowers with FICO scores between 500-579, the minimum down payment is 10%. The lower 3.5% down payment is the FHA's primary advantage for first-time buyers who lack the 10-20% down typically required for conventional loans. Down payment funds can come from: personal savings, gift funds from family members, down payment assistance programs (state and local), employer assistance programs, and eligible retirement account withdrawals (first-time homebuyer exception) (HUD FHA Handbook 4000.1, 2026).

What is the FHA mortgage insurance premium (MIP)?

FHA loans require both an upfront MIP and annual MIP. Upfront MIP: 1.75% of the loan amount, typically rolled into the loan balance. Annual MIP: 0.55% of the outstanding loan balance, divided by 12 and added to monthly payments. Annual MIP is required for the life of the loan if the down payment is less than 10%; for loans with 10%+ down, MIP can be canceled after 11 years. The annual MIP effectively adds 0.45-0.55% to the mortgage rate, but the lower base FHA rate still results in lower total payments for many borrowers (HUD FHA Handbook 4000.1, 2026).

What credit score do I need for an FHA loan?

The minimum FICO score for an FHA loan is 500, but lenders typically require 580 or higher for the 3.5% down payment option. With FICO 580-619, expect higher rates (6.50-7.50% on 30-year FHA) and stricter underwriting. With FICO 620-679, you qualify for standard FHA pricing (6.27-6.50%). With FICO 680+, you qualify for the best FHA pricing (6.10-6.30%). Most lenders overlay additional credit requirements beyond FHA minimums: no bankruptcy in past 2 years, no foreclosure in past 3 years, stable employment for 2+ years (HUD FHA Handbook 4000.1, 2026).

Should I choose FHA or conventional as a first-time buyer?

FHA vs conventional comparison for first-time buyers: (1) Down payment: FHA 3.5% (FICO 580+); conventional 3-5% (FICO 620+, with private mortgage insurance PMI). (2) Credit score: FHA accepts lower scores (500+); conventional typically 620+. (3) Rate: FHA typically 50-75bp higher base rate, but lower MIP than conventional PMI for low down payments. (4) Mortgage insurance: FHA MIP required for life of loan (unless 10%+ down); conventional PMI removable at 78% LTV. (5) Loan limits: FHA limits vary by county ($524,225-$1,209,750 for 2026); conventional conforming limits match. For most first-time buyers with 3.5% down and FICO 680+, FHA is more cost-effective. For buyers with 5%+ down and FICO 740+, conventional is usually better (HUD FHA; Fannie Mae; Freddie Mac, 2026).

Can I refinance my FHA loan to a lower rate?

Yes - the FHA offers an FHA Streamline Refinance for existing FHA borrowers. The FHA Streamline requires: (1) Current FHA loan on the property. (2) No appraisal required in most cases. (3) No income verification in many cases. (4) Net tangible benefit - the new rate must meaningfully lower monthly payment or shorten loan term. (5) On-time mortgage payments for the past 12 months. Closing costs can be rolled into the loan balance. With current FHA rates at 6.27% (September 12, 2026), borrowers with FHA loans from 2023-2024 at 6.50-7.00% may benefit from a streamline refinance. Compare to a conventional refinance to confirm the better option (HUD FHA Handbook 4000.1, 2026).

FHA Mortgage Rates September 12 2026 First-Time

Published September 12, 2026 — Washington, D.C. FHA mortgage rates rose to 6.27% (+11bp post-CPI) for 30-year FHA on September 11, 2026 per Mortgage Research. FHA loans remain the lowest-cost agency option for first-time buyers, typically 50-75 basis points below conventional conforming rates. The FHA requires just 3.5% down for borrowers with FICO 580+ and charges a 0.55% annual mortgage insurance premium.

Data last verified September 12, 2026 from Mortgage Research daily rate report (September 11, 2026), HUD FHA Handbook 4000.1, and Federal Housing Administration program guidelines.

FHA mortgage rates on September 12, 2026: 30-year FHA at 6.27% (+11bp post-CPI per Mortgage Research). 15-year FHA at ~5.65% (estimate). FHA rates are typically 50-75bp below conventional conforming. With the post-CPI 30-year conventional at 6.83-7.10%, the spread has narrowed. FHA loans require 3.5% down for FICO 580+ borrowers and 10% for FICO 500-579, with 0.55% annual MIP. Best option for first-time buyers with limited down payment funds (Mortgage Research, September 11, 2026; HUD FHA Handbook 4000.1, 2026).

FHA loan program overview

The Federal Housing Administration (FHA) insures mortgages issued by FHA-approved lenders. Key program features:

Feature	FHA loan
Minimum down payment	3.5% (FICO 580+); 10% (FICO 500-579)
Minimum FICO	500
Upfront MIP	1.75% of loan amount (rolled into balance)
Annual MIP	0.55% of outstanding balance (typically for loan life)
Loan term	15 or 30 years
Loan limits (2026)	$524,225-$1,209,750 by county
Property types	1-4 unit primary residence, approved condos
Assumability	Yes - buyer can assume seller's FHA loan at the original rate
Seller concessions	Up to 6% of sale price

Source: HUD FHA Handbook 4000.1 (2026); Mortgage Research.

FHA loan limits by county (2026)

FHA loan limits are tied to conforming loan limits and vary by county:

Area type	2026 FHA loan limit	Examples
Low-cost area baseline	$524,225	Most US counties
High-cost area ceiling	$1,209,750	Most expensive counties (Los Angeles, San Francisco, NYC, Honolulu)
Special high-cost areas	$1,500,000 (Alaska, Hawaii, Guam, USVI)	Alaska, Hawaii, Guam, US Virgin Islands

Source: HUD FHA Mortgagee Letter 2026 (2026).

For first-time buyers in high-cost areas, the FHA loan limit of $1,209,750 provides significantly more purchasing power than the conventional baseline of $806,500 in most counties. FHA loans can finance properties up to the county-specific limit.

FHA mortgage insurance premium (MIP) details

FHA loans require both upfront and annual mortgage insurance premiums:

MIP component	Rate	Application
Upfront MIP	1.75% of loan amount	Rolled into loan balance at closing
Annual MIP (most loans)	0.55% of outstanding balance	Divided by 12, added to monthly payment, required for loan life
Annual MIP (10%+ down)	0.50%	May be canceled after 11 years if loan is current
Annual MIP (15-year, 78%+ LTV, FICO 680+)	0.40%	May be canceled after 11 years

Source: HUD FHA Handbook 4000.1 (2026).

The annual MIP effectively adds 0.40-0.55% to the mortgage rate. For a borrower comparing FHA at 6.27% vs conventional at 6.91% (both 30-year fixed): the FHA rate advantage is 64bp, partially offset by 55bp annual MIP = net FHA advantage 9bp. For borrowers with strong credit and 10%+ down, conventional may still be lower.

FHA vs conventional comparison for first-time buyers

Factor	FHA loan	Conventional loan
Min. down payment	3.5% (FICO 580+)	3-5% (FICO 620+, with PMI)
Min. credit score	500	620 (typical)
Base rate	6.27% (30Y FHA, Sep 12, 2026)	6.91% (30Y conv., Sep 12, 2026)
Mortgage insurance	0.55% MIP (loan life)	PMI (cancellable at 78% LTV)
Effective rate	~6.82%	~6.91% (if PMI 0.40% at 95% LTV)
Loan limits	$524K-$1.21M (county-specific)	$806,500 baseline (most counties)
Assumability	Yes	No (typically)
Property eligibility	Primary residence only	Primary, second home, investment

Source: HUD FHA Handbook 4000.1 (2026); Fannie Mae/Freddie Mac conforming loan guidelines (2026).

FHA Streamline Refinance for current FHA borrowers

Current FHA borrowers may benefit from refinancing via the FHA Streamline Refinance program:

Eligibility: current FHA loan on the property; on-time mortgage payments for past 12 months; net tangible benefit (lower payment OR shorter term OR ARM to fixed conversion).
No appraisal: in most cases, no appraisal required (uses original purchase appraisal plus current LTV estimate).
Limited documentation: no income verification required; no credit score minimum in some cases.
Closing costs: can be rolled into the loan balance or paid by lender through premium pricing.
MIP: new MIP applies based on current loan balance and current MIP rate schedule.

With FHA rates at 6.27% (September 12, 2026), borrowers with FHA loans from 2023-2024 at 6.50-7.00% could save $50-150/month via streamline refinance. The breakeven on closing costs (typically 1-2% of loan balance) is typically 18-30 months, well within the average FHA borrower holding period (HUD FHA Handbook 4000.1, 2026).

Down payment assistance programs

Many first-time buyers combine FHA loans with down payment assistance (DPA) programs:

DPA program type	Examples	Benefit
State housing finance agency	CalHFA (CA), CHFA (CT), Florida HFA, Texas Department of Housing	0% interest loans; up to 5% of purchase price
Local government	Many cities and counties offer $5K-$25K grants or loans	Closing cost assistance; down payment supplements
Employer programs	Many large employers offer homebuyer assistance	$5K-$15K grants, often matched by employer
Teacher/First Responder programs	Many states offer reduced-rate or 0% loans for teachers, firefighters, police	Down payment + closing cost assistance
VA combined with FHA	Some programs stack benefits	Combined assistance for eligible borrowers

Source: HUD, state housing finance agencies (2026).

DPA programs can effectively reduce the FHA down payment requirement from 3.5% to 0% in some markets, dramatically expanding first-time buyer access to homeownership.

FAQ

Can I use an FHA loan for a second home or investment property?
No. FHA loans are restricted to primary residences — the property must be the borrower's main residence. For second homes or investment properties, conventional, VA (eligible veterans), or portfolio lender products are alternatives. Conventional loans typically require 10-20% down for investment properties (HUD FHA Handbook 4000.1, 2026).

What is the difference between FHA 203(b) and FHA 203(k)?
FHA 203(b) is the standard FHA purchase or refinance mortgage. FHA 203(k) is a rehabilitation mortgage that combines the purchase price and renovation costs into a single loan. The 203(k) is useful for first-time buyers purchasing fixer-upper properties. There are two variants: Standard 203(k) for major renovations ($5K+); Limited 203(k) for minor renovations up to $35K. Both require 3.5% down and MIP applies (HUD FHA Handbook 4000.1, 2026).

Can I assume someone's FHA loan to get a lower rate?
Yes. FHA loans are assumable, meaning a buyer can take over the seller's existing FHA loan at the original rate and terms. In a 6.83-7.10% rate environment, assuming a 2020-2021 FHA loan at 2.50-3.50% provides significant savings. The buyer must qualify with the lender, the loan assumption process includes credit verification, and the seller typically requires release of liability. Assumability is a major advantage of FHA loans in rising-rate environments (HUD FHA, 2026).