Best FHA mortgage lenders in 2025

FHA loans — those insured by the Federal Housing Administration — have been steadily increasing in appeal in today’s unaffordable housing market. FHA loans come with more flexible financial requirements than conventional loans, making them especially attractive to first-time homebuyers and others with lower income or credit scores. While the FHA sets eligibility requirements, 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 on several key criteria. Here’s our guide to the best FHA mortgage lenders in 2024.

Best FHA loan lenders

Rate

Rating: 4.5 stars out of 5

4.5

Learn more in our Bankrate review

• Lender details

  • Availability: All U.S. states
  • Loan products: Conventional, jumbo, FHA, VA
  • Credit requirements: 620 for conventional loans
  • Down payment requirements: 3% for conventional loans; 3.5% for FHA loans; none for VA loans

• Pros and cons

  

  Pros

  • Borrowers can get approved in just one day
  • Rates are advertised online for easy comparison
  • Branch locations in the majority of states

  

  Cons

  • No USDA loans
  • Minimum borrower requirements not listed online

• Why we chose Rate

  Rate scores well for affordability and availability, and was chosen as the best lender for FHA loans in the 2025 Bankrate Awards. In addition to being one of the top FHA lenders in the U.S., Rate routinely receives rave reviews from Bankrate readers, in part for the lender’s simple application process and customer service.

Newrez

Rating: 4.5 stars out of 5

4.5

Learn more in our Bankrate review

• Lender details

  • Availability: All U.S. states
  • Loan products: Conventional, jumbo, FHA, VA, USDA
  • Credit requirements: 580 for conventional loans, FHA loans and VA loans; 660 for jumbo loans
  • Down payment requirements: 1% for conventional loans; 3.5% for FHA loans; none for VA loans or USDA loans

• Pros and cons

  

  Pros

  • Can close loans in as few as 10 days
  • Offers a 1 percent down conventional loan program

  

  Cons

  • Current mortgage rates not listed online

• Why we chose Newrez

  Newrez scores well for affordability and availability. It’s one of the largest FHA lenders in the U.S., and offers some borrowers opportunities to save with closing cost credits, plus an on-time closing guarantee for peace of mind when buying a home.

loanDepot

Rating: 4.2 stars out of 5

4.2

Learn more in our Bankrate review

• Lender details

  • Availability: All U.S. states
  • Loan products: Conventional, FHA, VA,USDA
  • Credit requirements: 620 for conventional loans and VA loans; 700 for jumbo loans; 580 for FHA loans
  • Down payment requirements: 5% for conventional loans; 3.5% for FHA loans; none for VA loans or USDA loans

• Pros and cons

  

  Pros

  • Offers a Lifetime Guarantee program: After you finance with loanDepot once, it'll waive its lender fee when you refinance your home with loanDepot in the future
  • Perks like home security and moving discounts and smart home products
  • Has a variety of down payment assistance and affordable housing options

  

  Cons

  • No mortgage rates on its website

• Why we chose loanDepot

  LoanDepot scores well for availability and borrower experience. The lender stands out especially for its AccessONE+ program, which provides $9,000 of down payment and closing cost assistance, as well its willingness to work with borrowers who have a limited credit history.

Pennymac

Rating: 4.2 stars out of 5

4.2

Learn more in our Bankrate review

• Lender details

  • Availability: All U.S. states
  • Loans offered: Conventional, jumbo, FHA, VA, USDA
  • Credit requirements: 620 for conventional loans and VA loans; 580 for FHA loans
  • Down payment requirements: 3% for conventional loans; 3.5% for FHA loans; none for VA loans or USDA loans

• Pros and cons

  

  Pros

  • Large lender with national presence
  • $1,000 off closing costs if preapproved (not applicable to jumbo loans or refinancing) and a rate reduction of 1 percent for 12 months
  • Receive $2,000 if you refinance your Pennymac loan within 3 years
  • Receive up to $9,000 if you use a partnered agent

  

  Cons

  • No branch locations
  • Below-average customer service ranking

• Why we chose Pennymac

  Pennymac scores well for availability and borrower experience. While most FHA lenders allow no more than a 43 percent debt-to-income (DTI) ratio, Pennymac allows some flexibility up to 55 percent for certain applicants. The lender also offers savings options, including a 1 percent rate discount in your first year, along with $2,000 if you refinance your loan within the next three years.

How to get an FHA loan

FHA loans are insured by the Federal Housing Administration, but the FHA doesn’t loan them directly to borrowers. 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. Here’s how to get one:

1. Check your credit. While FHA loans have a lower credit score minimum to qualify, you’ll still need at least a 580 — and with some lenders, you might need higher than that. Before you dive into comparing FHA lenders, check your credit reports and scores. If your score doesn’t meet the FHA minimum, now’s the time to improve it. Here are our top tips to improve your credit score.
2. Compare offers from more than one FHA lender. While FHA loans have fairly standard qualifying requirements, the interest rates and fees vary by lender. You can check current FHA loan rate offers on Bankrate.
3. Contact your lender. FHA loans only require 3.5 percent down, but it might be difficult to save if you’re on a tight budget or in an especially pricey area. Once you’ve found an FHA lender you like, ask for help finding down payment assistance. Your loan officer might point you to a special grant or state housing finance agency program.
4. Gather your financial documents. With your credit and down payment taken care of, now’s the time to submit paperwork to get preapproved. This includes income-verifying documents like bank statements and W-2s, as well as debt documents like car or student loan statements.
5. Consider locking your rate. The preapproval assumes a certain loan amount at a specific interest rate. If you don’t lock your rate and it takes you longer than anticipated to find a home, you might end up paying a higher (or lower) rate than the one you were quoted. Here’s more on how to decide whether to lock your mortgage rate.

Qualifications for FHA loans

Here are the basic requirements for an FHA loan. You must:

• Borrow no more than $524,225 for a one-unit property in most areas (there are higher limits in higher-priced 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 DTI ratio (with some exceptions)
• 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

Who are the largest FHA lenders in the U.S.?

Here are the top FHA mortgage lenders in the U.S. based on total FHA volume in 2024:

1. Pennymac
2. AmeriHome
3. Planet Home Lending
4. Newrez
5. CrossCountry Mortgage
6. loanDepot
7. Fairway Independent Mortgage
8. Movement Mortgage
9. Guild Mortgage
10. CMG Financial

FAQ

• Are FHA loans only for first-time buyers?

  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.

• What are the benefits of an FHA loan?

  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.

• What are the different types of FHA loans?

  In addition to the FHA’s primary home loan option for purchasing a new home, which comes in fixed- and adjustable-rate formats – there are other FHA loan products including 203(k) loans to help with the cost of repairing a home, energy-efficient mortgages for properties that are more environmentally-friendly and reverse mortgages (HECMs) for homeowners who are 62 or older.

• Methodology

  To determine the best FHA mortgage lenders, Bankrate periodically evaluates more than 75 lenders for factors relating to affordability, availability and borrower experience, assigning each a Bankrate Score out of five stars. The best FHA mortgage lenders generally have a Bankrate Score of 4.2 stars or higher. Learn more about our methodology.