Best FHA loan lenders of November 2025

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FHA loans have helped thousands of families buy their first home. With less stringent credit score requirements, lower down payments, and flexible debt-to-income ratios, they serve as a stepping stone to homeownership. Here are the best FHA loan lenders right now.

• Is now a good time to take out an FHA loan?

The best FHA lenders of November 2025

Best overall: PNC Bank

Why PNC Bank mortgages stand out: PNC Bank offers qualified buyers grants of $10,000 or more, and excels in customer satisfaction.

PNC Bank FHA loan details

• Availability: All 50 states and Washington, D.C.

• Minimum credit score: 600

• Minimum down payment: 3.5%

• Median debt-to-income ratio: 45%

Pros

• Borrowers may qualify for grants applied to FHA loan closing costs up to $15,000 in Pittsburgh and up to $10,000 in most other markets. Amounts vary depending on the geographical location.

• A rate calculator on the PNC FHA loans page will give you sample interest rates based on the value of the home you're looking to buy and your down payment, credit score range, and location. No contact is necessary.

• Offers both fixed-rate and adjustable-rate FHA loans.

• The lender ranks above average in the latest J.D. Power mortgage originator customer satisfaction survey.

Cons

• PNC's mortgage interest rates and loan costs are just average.

• The lender requires a 600 credit score; many FHA lenders accept a score of 580.

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Best for renters seeking an FHA mortgage: Rocket Mortgage

Why Rocket Mortgage stands out: A top-five FHA lender by volume, Rocket Mortgage now offers a special boost to renters looking to buy a house.

Rocket Mortgage FHA loan details

• Availability: All 50 states and Washington, D.C.

• Minimum credit score: 580

• Minimum down payment: 3.5%

• Median debt-to-income ratio: 43%

Pros

• Offers a "RentRewards" program, which allows a closing costs credit equal to 10% of the rent you pay.

• Ranks above average in customer satisfaction according to J.D. Power.

• A rent-vs.-buy calculator breaks down the difference in your housing costs over two years and includes expenses such as property taxes, insurance, and maintenance.

Cons

• While Rocket already requires a minimum credit score of 580, which is above standard FHA guidelines (500), FHA applicants undergoing manual underwriting may need a qualifying credit score of 640.

• Yahoo Finance analysis shows Rocket offered borrowers average interest rates but higher loan costs in 2024.

Read our full Rocket Mortgage review.

Best for guaranteed on-time closing: Chase Bank

Why Chase Bank mortgages stand out: Chase offers the conveniences of a large national bank: many local offices, an assortment of deposit accounts, and a commitment to on-time mortgage closings.

Chase Bank FHA loan details

• Availability: All 50 states and Washington, D.C.

• Minimum credit score: 620

• Minimum down payment: 3.5%

• Median debt-to-income ratio: 45%

Pros

• Chase guarantees an on-time closing in as little as three weeks or you may be eligible for $5,000. Available to qualified borrowers.

• The lender offers an abundance of learning resources and tools, including a well-reviewed podcast called "Beginner to Buyer." Chase earns a Yahoo Finance 5-star rating in the Online Features category.

• It provides estimated FHA mortgage rates based on your location. You simply enter your ZIP code.

Cons

• There are no red flags on fees, but loan costs and mortgage rates are just average.

• You can find other FHA loan lenders with lower credit score requirements.

Best for FHA refinancing: Pennymac

Why Pennymac mortgages stand out: Pennymac is the largest FHA lender in the nation based on the number of loans issued in 2024. A large portion of those loans were FHA refinances.

Pennymac FHA loan details

• Availability: All 50 states and Washington, D.C.

• Minimum credit score: 580

• Minimum down payment: 3.5%

• Median debt-to-income ratio: 45%

Pros

• If FHA mortgage rates go down within three years of closing on a home loan with Pennymac, you can receive a $2,000 credit toward your refinance closing costs.

• The lender offers a 20-year FHA mortgage option — as well as the typical 15-year and 30-year options — for both home purchases and refinances.

• Pennymac offers FHA Streamline Refinancing and FHA cash-out refinances.

Cons

• Pennymac offered below-average interest rates on loans issued in 2024. However, overall loan costs were much higher than average.

• Pennymac has a well-below-average rating for customer satisfaction, according to the 2024 J.D. Power Mortgage Origination Satisfaction Study.

Best for FHA rate buydown: U.S. Bank

Why U.S. Bank mortgages stand out: U.S. Bank helps ease the pain of elevated interest rates by offering eligible borrowers a below-market mortgage rate during the first year of a home loan.

U.S. Bank FHA loan details

• Availability: All 50 states and Washington, D.C.

• Minimum credit score: 640

• Minimum down payment: 3.5%

• Median debt-to-income ratio: 43%

Pros

• Your FHA loan may qualify for a one-year mortgage rate buydown. U.S. Bank will adjust your monthly payment to a lower rate for 12 months, after which your payment will revert to the original loan rate.

• You can apply for an FHA prequalification online. U.S. Bank says it takes about five minutes and won't impact your credit score.

• U.S. Bank has many useful online features, including an FHA loan calculator that includes mortgage insurance premiums and an extensive financial education page.

Cons

• U.S. Bank requires a minimum credit score of 640 for most FHA loans. The FHA — and many mortgage lenders — allow a minimum FICO score of 580.

Best for bundled home-buying services: Rate

Why Rate mortgages stand out: Rate's impressive online resources and capabilities are supplemented by a suite of related home-buying services, including insurance.

Rate FHA loan details

• Availability: All 50 states and Washington, D.C.

• Minimum credit score: 550

• Minimum down payment: 3.5%

• Median debt-to-income ratio: 46%

Pros

• Rate (previously Guaranteed Rate) provides access to solutions related to home buying, such as an insurance marketplace, title services, and a home search tool.

• Educational resources include courses for first-time home buyers, credit building, and home retention, as well as personal finance workshops.

Cons

• Sample FHA mortgage rates are based on a 680 FICO score. Borrowers may qualify with a lower credit score, but their rate will likely be higher.

• A "Same Day Mortgage," Rate’s program that approves your application in one day, is unavailable to FHA borrowers.

• Customer satisfaction is well below average, according to J.D. Power's Satisfaction Study.

Who offers the lowest FHA loan rates?

Yahoo Finance's research into Home Mortgage Disclosure Act (HMDA) data revealed that lenders with smaller customer bases, such as local credit unions and private banks serving wealthy clients, often offer the lowest mortgage rates.

Among the lenders reviewed here, Pennymac offered the lowest rates to borrowers in 2024, the latest data available. However, it's important to note that their loan costs were much higher than the median.

Because FHA loans have such relaxed borrower qualifications, they can include added fees. The most substantial additional cost is the mortgage insurance premium, which is an up-front and ongoing expense that can last the life of the loan. It protects the lender in the event of borrower defaults.

Lenders and brokers may also add origination fees to FHA loans.

• How to remove FHA mortgage insurance

Qualifications for an FHA loan

An FHA loan is a government-backed mortgage with no set minimum or maximum income guidelines. However, an FHA mortgage lender will verify stable employment and income.

Borrowers may qualify with a credit score of 500 with a 10% down payment or 580 with 3.5% down. However, exact credit score requirements vary by lender.

You may not qualify for an FHA loan if:

1. You have a credit score below 500.

2. You are delinquent on any federal debt (including student loans) or have a federal lien on your assets.

3. You have a debt-to-income ratio (DTI) over 57% — though lenders can set their own maximum DTI ratios.

You do not have to be a U.S. citizen to qualify for an FHA loan. Still, you must have lawful permanent resident alien status or be a non-permanent resident alien with a valid Social Security number and eligible to work in the U.S.

How to get an FHA loan

Look for mortgage lenders that offer the best combination of low interest rates and minimal fees. They should also have helpful, respectful personnel who clearly guide you through the loan process and show they want your business.

• Use a mortgage calculator to determine how much of a monthly payment you can afford.

• Check your credit report and credit score so that you know your creditworthiness. You’ll need at least a 580 credit score to qualify for an FHA loan with a 3.5% down payment. Many credit card companies and financial institutions offer free credit score access.

• Consider various mortgage loan types to determine which is best for you. FHA loans are great options, but you might find an even better fit.

• Determine how much down payment you can make. You only need 3.5% down for an FHA loan, but if you put down 10%, you can qualify with a 500 credit score and automatically remove FHA mortgage insurance after 11 years.

• Shop with multiple lenders and compare loan offers. Pay close attention to the annual percentage rate (APR) you are offered.

• Select your best offer and get an official mortgage preapproval.

Pros and cons of FHA loans

Pros

• Low down payment: If you have a 580 credit score, you only need a 3.5% down payment to get an FHA loan. Some conforming loans require 5% or more, and you'll probably need 10% to 20% down for a jumbo loan.

• Low credit score requirement: You only need a 500 credit score to qualify for an FHA loan if you have a 10% down payment. Otherwise, you're typically eligible with a 580 score and 3.5% down payment.

• Higher debt-to-income ratio (DTI): Typically, mortgage lenders approve you for an FHA loan with a 43% DTI ratio. Many conventional loans cap your DTI at 41%. However, FHA and conventional loan lenders may offer flexibility, so shopping for lenders and loan types is essential. For example, a few of the top lenders on our list have a median DTI ratio allowance of 45% for FHA loans.

Cons

• Property requirements: The property you're buying must meet the minimum property standards set by the U.S. Department of Housing and Urban Development (HUD), and a home appraiser will check that the home abides by these rules when they visit the house.

• Loan limits: You can't borrow as much with an FHA loan as with a conforming conventional loan. In 2025, the conforming loan limit for a single-unit property is $806,500 in most parts of the U.S, and the FHA loan limit is $524,225. The FHA hasn't announced its 2026 borrowing limits, but conforming loan limits are increasing to $832,750 in most areas.

• Mortgage insurance: Unlike VA and USDA loans, FHA loans require mortgage insurance premiums (MIPs) throughout the life of the loan. It's also not nearly as easy to cancel FHA MIPs as it is with conventional loan private mortgage insurance (PMI).

The best FHA lenders FAQs

Is it hard to get an FHA loan right now?

Let's face it, no home loan is easy to get — but FHA loans are the most flexible when it comes to qualifying. There will be a lot of paperwork, just as with all loans. You will also have to prove that you have a steady income and can make the monthly mortgage payment. The key is to ask questions, understand what you are signing, and prepare for an occasional bump in the road along the way.

Do sellers avoid FHA buyers?

A seller can refuse your offer for any reason, even if it is higher than someone else's offer. One reason sellers might avoid an FHA buyer is that FHA loans often have more stringent appraisal standards. A seller may be required to make repairs to meet those HUD property guidelines. FHA borrowers may also be unlikely to afford large earnest money deposits that entice sellers — and FHA loans have a reputation for taking longer to close.

Who is the largest FHA lender?

Pennymac is the largest FHA lender by number of FHA loans issued, according to 2024 HMDA data.

Are all FHA lenders the same?

No, not all FHA lenders are the same. While the Federal Housing Administration has guidelines for the credit score and down payment needed to qualify for an FHA loan, lenders can require higher eligibility standards and charge different interest rates and fees.

What credit score is good for FHA loans?

You can qualify for an FHA loan with a 500 credit score if you have a 10% down payment, or a 580 score with 3.5% down. However, as mentioned above, lenders may use "overlays" to enforce higher eligibility standards.

What bank is best for FHA loans?

You may be able to get a good deal on an FHA loan if you go through the bank you already use, but comparison shopping is a must. If you are considering a bank, there are several on our recommended lender list for FHA loans.

Our methodology: How we chose the best FHA lenders

Yahoo Finance reviews mortgage lenders based on five primary considerations: 1) Interest rates. Using 2024 Home Mortgage Disclosure Act data from almost 5,000 mortgage companies, we analyze mortgage lenders based on issued mortgage rates below or above the annual median of reporting lenders. 2) Affordability. A measure of loan product availability and the willingness of a lender to offer government-backed loans, low down payments, down payment assistance, and consideration of nontraditional credit. 3) Loan costs. HMDA data is again analyzed, and total loan costs are compared to the annual median. 4) Rate transparency. The ability of a website user to obtain a mortgage interest rate estimate. We also consider whether rates are enhanced with discount points or high credit score requirements, disclaimers revealing rate assumptions, sample advertised rates, and whether adjustable or no discount point rate estimates are available. 5) Online features. An analysis of the educational material, calculators, and additional resources available to users.

Advertisers or sponsorships do not influence ratings.

Editorial disclosure for mortgages:

The information in this article has not been reviewed or approved by any advertiser. The details on financial products, including interest rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the lender's website for the most current information. This site doesn't include all currently available offers.

Laura Grace Tarpley edited this article.

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Up Next

• Zero-down mortgage: How to buy a house with no down payment
• How to use an FHA construction loan to build your dream home
• Buying a house before the end of the year? What you need to know.