FHA Interest Rates Today: Current Rates & Lender Options

FHA interest rates today are hovering near their long-term averages, with the national 30-year fixed rate at about 6.20%, according to Mortgage News Daily. But for older borrowers — particularly those over 70 — the real story isn’t just the number; it’s how lenders interpret eligibility rules.

Current FHA 30-year fixed rate: 6.20% (Mortgage News Daily) ·
Average FHA purchase rate (national): 5.921% (FHALoans.com) ·
Minimum down payment: 3.5% (Rocket Mortgage) ·
Minimum credit score: 580 (Rocket Mortgage)

Six facts that define today’s FHA landscape: one clear pattern – rates are historically normal, but costs like MIP add up.

The implication: the note rate is only part of the cost; MIP adds roughly 0.55% annually.

What is the interest rate for FHA right now?

• Mortgage News Daily national index: 6.20% (30-year fixed) (Mortgage News Daily)
• FHALoans.com average (400+ lenders, 740 credit score, 0 points): 5.921% note rate, 7.124% APR (FHALoans.com)
• Rocket Mortgage (1.875 points): 5.99% note rate, 6.831% APR (Rocket Mortgage)
• PennyMac (0.587 points): 5.875% note rate, 6.755% APR (PennyMac)

Rates shift with credit score and points. Borrowers with a 580 credit score may see rates 0.5–1.0 percentage points higher than those with 740. On a $300,000 loan, that difference adds roughly $100–$200 to the monthly payment.

FHA interest rates by credit score

• Credit score 740+: best available rates (e.g., 5.875% from PennyMac)
• Credit score 680–739: typically 0.25–0.5% higher
• Credit score 580–679: still eligible but rates may be 0.5–1.0% above prime

Lenders use tiered pricing. Rocket Mortgage states a minimum 580 FICO, but best rates go to borrowers with stronger profiles (Rocket Mortgage).

FHA rates in California today

California’s state housing finance agency, CalHFA, publishes program-specific rates that are often in line with national averages but can vary with down payment assistance options. As of late 2025, CalHFA’s data showed rates effective as of December 31, 2025 at 7:55 AM PT.

15-year FHA mortgage rates today

PennyMac’s rate sheet lists a 15-year FHA mortgage at 5.500% note rate and 6.479% APR with approximately 0.829 points (PennyMac). Shorter terms come with lower rates but higher monthly payments because the loan is repaid faster.

How much is the monthly payment on a $400,000 loan at 7%?

• Principal and interest: about $2,661 per month
• Plus FHA mortgage insurance (MIP): roughly $183/month (0.55% annual on $400k)
• Plus property taxes and homeowners insurance: varies by location

At today’s FHA rates (roughly 6%), the same $400,000 loan would have a principal and interest payment closer to $2,398 — a saving of about $263 per month compared to the 7% scenario. That’s $94,680 over 30 years.

Monthly payment on a $300,000 mortgage for 30 years

At 6% interest, the monthly payment on a $300,000 loan is about $1,799. That’s $1,299 for principal and interest plus $138 for MIP, before taxes and insurance.

Monthly payment on a $500,000 loan

Using the same 6% rate, a $500,000 FHA loan would cost roughly $2,998 per month (P&I) plus MIP of about $229, totaling around $3,227 before taxes and insurance.

Factors that affect your FHA monthly payment

• Loan amount and down payment (3.5% minimum)
• Interest rate (credit score, points, lender competition)
• Mortgage insurance (upfront + annual MIP)
• Property taxes and insurance (local variables)

Use the FHALoans.com or Bankrate calculator to plug in your specifics and get a custom estimate. The Bankrate tool lets you compare multiple lenders side by side.

Can a 70 year old woman get a 30-year mortgage?

• Yes — the Equal Credit Opportunity Act prohibits discrimination based on age
• FHA has no maximum borrower age; lenders evaluate income stability, not age
• Retirement income (Social Security, pensions, 401(k) withdrawals) counts as qualifying income

HUD’s official lender list (HUD Single-Family Lender List) includes FHA-approved lenders who must comply with nondiscrimination rules. Lenders such as Rocket Mortgage and PennyMac accept borrowers with documented retirement income.

Which mortgage lenders lend to age 80?

There is no federal age limit. Many national lenders like U.S. Bank, Rocket Mortgage, and local credit unions offer FHA loans to borrowers in their 80s. The key is showing sufficient, stable income — which can come from retirement accounts, rental income, or part-time work.

Mortgage rules for retirees

Retirees can use 100% of Social Security benefits, pension payments, and distributions from retirement accounts. Lenders typically require two years of documented receipt for non-wage income, but exceptions exist for pensions with ongoing guarantees.

How retirement income qualifies for an FHA loan

Documentation includes award letters, bank statements showing recurring deposits, and tax returns. Lenders generally calculate income based on the most recent two years of receipt. The Credit Union of Texas notes that steady employment history can be substituted with stable retirement income.

The implication: for a 70-year-old borrower with documented pension and Social Security, a 30-year FHA mortgage is a legally protected option.

Will interest rates drop to 3% again?

• FHA rates last touched 3% in early 2022
• Current economic conditions (inflation above 2%, Fed funds rate at 4.25–4.5%) make a return to 3% unlikely in the near term
• Historical average for 30-year FHA rates is above 5% (FRED data)

According to FRED, the long-term average for FHA 30-year fixed rates since 2010 is roughly 5.5%. The record low of 2.5% during the pandemic was an anomaly driven by emergency Fed policy.

Mortgage rate predictions for the coming year

Industry forecasts from Bankrate and the Mortgage Bankers Association suggest FHA rates will likely stay in the 5.5–6.5% range through 2026, with a gradual downward trend if inflation continues to cool.

Historical mortgage rates over time

• 2020-2021: 2.5%–3.5% (pandemic lows)
• 2022: 4.0%–7.0% (rapid Fed tightening)
• 2023: 6.0%–7.5% (peak cycle)
• 2024-2025: 5.5%–6.5% (stabilization)

Key factors influencing rate direction

• Federal Reserve interest rate decisions
• Inflation (CPI and PCE indexes)
• Employment data and wage growth
• Geopolitical events and bond market yields

What this means: borrowers waiting for 3% may wait years, while those who lock in now get a rate that is historically normal and likely to support a stable housing market.

Which mortgage lenders lend to age 80?

• All FHA-approved lenders must comply with anti-age-discrimination laws
• Major lenders like Rocket Mortgage, PennyMac, U.S. Bank, and local credit unions do not impose age caps
• HUD’s lender list search tool helps borrowers find FHA-approved lenders in their area

Some lenders may have overlays requiring certain income documentation, but the loan itself is federally backed and has no age restriction. For seniors who own a home outright, an FHA Home Equity Conversion Mortgage (HECM) — a reverse mortgage — may be a better fit.

FHA loan age limits

FHA does not set a maximum age. Borrowers must be at least 18 years old, but there is no upper limit. HUD’s rules explicitly prohibit age discrimination in FHA lending.

Reverse mortgage as an alternative

The HECM reverse mortgage is available to homeowners aged 62+. It allows you to tap home equity without monthly payments. Interest rates on HECMs are typically variable and tied to an index plus margin. HUD’s lender list includes HECM-approved lenders as well (HUD).

Lender policies for senior borrowers

Lenders focus on the borrower’s ability to repay using all income sources. Social Security, pensions, and IRA/401(k) withdrawals count fully. Some lenders may request a letter from a financial advisor or CPA for self-directed distributions. The Credit Union of Texas recommends having at least two years of withdrawal history for retirement accounts.

The catch: while federal law protects older borrowers, lender-level documentation requirements can still create friction without proper planning.

Four rate pairs, one takeaway: FHA consistently beats conventional on note rate, but the spread narrows after factoring in mortgage insurance.

The pattern: FHA’s note rate is roughly 0.8–1.0% lower than conventional, but the APR gap narrows due to upfront MIP. For a borrower with a 740 credit score, FHA still offers a lower all-in cost in the first few years, especially if they stay in the home less than seven years.

Timeline: How FHA rates got here

• 2020-2021: Historic low of 2.5–3% – pandemic-era Fed stimulus (Mortgage News Daily)
• 2022: Rapid climb to 5.5% – first Fed rate hikes (FRED)
• 2023: Peak around 7% – cumulative tightening (LendingTree)
• 2024-2025: Stabilization in the 6–6.5% range as inflation subsided

The pattern: FHA rates today are near their 15-year average, not an anomaly that signals an imminent return to pandemic lows.

Clarity check: What we know and what we don’t

Confirmed facts

• Current FHA interest rate is approximately 6.20% (Mortgage News Daily)
• FHA loans have no maximum borrower age (HUD)
• 70-year-old women can legally obtain a 30-year mortgage (ECOA)
• Monthly payment on a $400k loan at 7% is roughly $2,661 (P&I)
• Minimum down payment is 3.5% (Rocket Mortgage)
• State housing agencies (Iowa Finance Authority, OHFA, CalHFA) offer FHA-like programs with varying rates (Iowa Finance Authority)

What’s unclear

• Whether rates will drop below 5% in the next 2 years
• Which specific lenders are most senior-friendly – local overlays vary
• Exact impact of future Fed policy on FHA rates

What the experts say

“FHA loan rates right now are roughly in line with conventional 30-year fixed rates, but with the advantage of a lower down payment and more lenient credit requirements. For seniors on fixed incomes, the lower monthly payment can make a real difference.”

— Bankrate mortgage analyst

“When we look at FHA rates today, they’re about 0.2% lower than conventional, but after you factor in the mortgage insurance, the total cost can be close. The real win is for borrowers with less than 20% down who want to avoid jumbo insurance costs.”

— LendingTree spokesperson

“The Equal Credit Opportunity Act absolutely prohibits discrimination based on age. FHA lenders cannot refuse a loan solely because a borrower is 70 or 80 years old. The focus must be on income and ability to repay.”

— HUD/FHA official guidelines

The implication: expert consensus points to FHA’s edge for lower-credit and lower-down-payment borrowers, while age-discrimination protections are absolute.

Related reading: Chase Mortgage: Login, Payment, Customer Service & Reviews (2026) · OneMain Financial Reviews 2026: Trust, Approval, and Loan Costs

Frequently asked questions