fha loan guidelines limits rates

FHA Loans

A Closer Look at FHA Loan Guidelines, Limits, and Rates

Applying for an FHA loan can be exciting. Perhaps you were just pre-approved and the reality of buying your first home is coming true! Or maybe you’ve just recently learned about FHA loans and are eager to get started with the process. Nothing can take that excitement away, except maybe misunderstanding a loan. But that’s why we’re here to help. Below, we’ve provided some details on FHA loan guidelines and requirements. 

FHA Loan Guidelines at a Closer Glance

Here at Mortgage Solutions Financial, we understand that FHA loans, or any loans for that matter, can be overwhelming and confusing. This is especially true for first-time homebuyers. Let’s take a closer look by breaking down FHA loan guidelines, limits, and rates to get the full picture of what an FHA loan entails.

Loan Guidelines

Getting an FHA loan means following their guidelines. Certain credit scores allow for lower down payments. Typically, a 580 score or higher would allow for a 3.5% down payment. Another important guideline is that the home must be the primary residence of the borrower. Proof of employment and steady income are also important requirements that must be met in order to secure the loan.


Lending limits for FHA loans are influenced by Fannie Mae and Freddie Mac. There are different limits based on two factors. The first factor is whether you live in what is considered to be a high-cost area or a low-cost area. The second is what type of property you are buying ranging from a single-family home to a four-plex unit.

Here are some examples of lending limits. These limits are subject to change based on the market and the location of the property.

  • Low-Cost Single – $356,362
  • High-Cost Four-plex – $1,581,750



Along with FHA guidelines, interest rates and APR are also important factors to consider. Rates right now are considered to be incredibly low due to the world’s current condition.

Here is an approximation of what rates are right now for FHA loans. These rates are subject to change based on the market and your personal credit score. 

  • 30-Year-Fixed Rates – Mortgage Rate – 2.735% – APR – 3.393%
  • 15-Year-Fixed Rates – Mortgage Rate – 2.477% – APR – 3.393%
  • 5-Year-ARM Rates – Mortgage Rate – 2.5% – APR – 3.207%


Know What to Expect

Understanding what is and isn’t allowed when it comes to FHA loan guidelines can be difficult. It’s also easy to miscalculate the numbers. No one wants to be surprised with what they can and can’t afford. That’s why we recommend calling our office and speaking to an expert. You’ll be able to work with an experienced team member who can run you through your options and help you understand what you qualify for.

Get Started Today

Start exploring loan options today. Call our office to speak to a representative and take the next steps towards pursuing your dream home.