Top FHA Loan Lenders for 2024 | Compare & Get Approved

Buying a home can be a daunting task. However, there are programs in place for first-time homebuyers to make it a little easier. One of the ways you can get a mortgage, even if you don’t have a big down payment or a perfect credit score, is the Federal Housing Administration (FHA) loan program.

Best FHA Lenders and Online Marketplaces

Here are some of the best FHA loan lenders, as well as marketplaces where you can easily compare your options.

How do FHA loans work?

Understanding FHA loans can help you buy a home that you can afford. Here’s what you need to know about getting an FHA loan and the best FHA lenders.

FHA loans are backed and guaranteed by the federal government. The government doesn’t actually make the loans, though. Instead, FHA loans are actually originated by individual FHA loan lenders who are approved by the government. The Federal Housing Administration backs the loans so lenders feel more comfortable with borrowers that might seem to present something of a higher risk.

Down Payment Requirements

With an FHA loan, you can put down as little as 3.5% for a down payment if you have a minimum credit score of 580. Additionally, there are FHA loans available for those with even lower credit scores, as long as they put down 10% of the purchase price.

You apply for an FHA loan much as you would in any other mortgage loan. The FHA lender will still review your credit history, income information, and other factors to determine whether you’re ultimately approved, how much you can borrow, and your interest rate. You’ll have to pay for private mortgage insurance during your FHA loan, though, so be aware of that added cost.

Before you choose a mortgage lender, though, it’s important to compare your options. Just as you can with any other loan quote, you can shop around and compare offers from different FHA mortgage lenders. Start by looking at the best lenders for FHA home loans, and you’ll have a better chance of receiving terms that work best for you.

How to Find the Best FHA Lender

To find the best FHA-approved lender, you will want to compare quotes from multiple lenders. Once you have at least three or four FHA loan quotes, it’s time to compare them. You want to make sure you’re comparing apples to apples, though. Some of the items that you need to watch for in a loan offer include:

• Loan origination fees
• Interest rate (including whether it’s fixed or adjustable)
• FHA mortgage insurance
• Required down payment
• Length of loan term
• Closing costs
• Estimates for property tax and home insurance

Make sure the terms are roughly the same so you can make a good comparison. You might also want to see if your potential lenders are willing to run different scenarios if you’re willing to pay points.

Run the Numbers

You might need to run a few numbers on your own to determine which trade-offs are worth it. For example, one FHA mortgage lender might have no origination fees but charge a higher interest rate.

Depending on interest rates, you might actually be better off going with an FHA mortgage lender that charges an origination fee but offers interest rates low enough to save you more money in the long run.

Carefully consider these items, and look at the total cost of the loan. In the end, you want a loan that is likely to cost you the least amount of money, while still allowing you to afford your monthly payments.