Most major banks, credit unions, and mortgage companies offer FHA loans, but you won’t find them at every branch or lender. FHA loans are issued by private lenders and insured by the Federal Housing Administration, which means any lender that wants to offer them must first get approved by HUD. There are thousands of HUD-approved lenders across the country, ranging from large national banks to small community credit unions and online-only mortgage companies.
Types of Lenders That Offer FHA Loans
FHA loans are available through three main categories of lenders, and the experience and pricing can vary significantly between them.
Large national banks like Wells Fargo, Bank of America, Chase, and U.S. Bank are HUD-approved and offer FHA loans. These banks tend to have stricter internal guidelines that go beyond FHA’s minimum requirements (called “overlays”), which can make approval harder despite technically meeting FHA standards. They may require higher credit scores or additional documentation compared to other lenders.
Non-bank mortgage companies are actually the biggest players in FHA lending today. Companies like Freedom Mortgage, CrossCountry Mortgage, DHI Mortgage, and Pennymac specialize in government-backed loans and process a large share of all FHA originations. These lenders often stick closer to FHA’s minimum guidelines, making them more accessible for borrowers with lower credit scores or smaller down payments.
Credit unions and community banks also offer FHA loans, though selection varies by institution. These lenders sometimes offer lower fees or more personalized service, and they may be more flexible with borrowers who have unusual income situations or thin credit histories.
How to Find HUD-Approved Lenders Near You
HUD maintains a free online search tool at hud.gov that lists every approved FHA lender in the country. You can filter results by ZIP code (searching within a 1- to 100-mile radius), city, state, or county. The tool also lets you filter by the type of FHA program, such as standard mortgage programs or property improvement loans.
This is the most reliable way to confirm whether a specific bank or lender is approved to offer FHA loans in your area. Not every branch of a national lender handles FHA mortgages, so checking the HUD list before you apply saves time. You can also call any lender directly and ask if they originate FHA loans, since customer-facing staff should know immediately.
FHA Credit Score and Down Payment Rules
One reason borrowers seek out FHA loans is the lower barrier to entry compared to conventional mortgages. The FHA minimum credit score is 500, though your score determines how much you need for a down payment.
- Credit score of 580 or higher: You can put down as little as 3.5% of the purchase price.
- Credit score between 500 and 579: You’ll need at least 10% down.
Keep in mind that these are FHA minimums. Individual lenders can set their own floors higher. Many banks won’t approve FHA loans below a 580 or even 620 credit score, even though FHA technically allows it. If your score is below 580, you’ll likely have better luck with non-bank mortgage companies or credit unions that advertise FHA loans for lower-credit borrowers.
FHA Loan Limits
FHA loans have a maximum amount you can borrow, which varies by location. For 2026, the floor for single-family homes in most of the country is $832,750. In higher-cost areas, the ceiling reaches $1,249,125. Your county’s specific limit falls somewhere in that range based on local home prices. You can look up your county’s limit on the HUD website.
FHA Mortgage Insurance Costs
Every FHA loan requires mortgage insurance, which protects the lender if you default. This is the trade-off for the lower down payment and credit requirements, and it adds meaningfully to your monthly payment.
There are two components. First, you’ll pay an upfront mortgage insurance premium of 1.75% of the loan amount, which is usually rolled into the loan balance rather than paid out of pocket. On a $300,000 loan, that adds $5,250 to your balance.
Second, you’ll pay an annual premium that’s divided into monthly installments and added to your mortgage payment. The annual rate depends on your loan size, term, and how much you put down. For the most common scenario (a 30-year loan of $726,200 or less with more than 5% down but 10% or less), the annual rate is 0.50% of the loan balance. On a $300,000 loan, that works out to roughly $125 per month.
How long you pay the annual premium depends on your down payment. If you put down more than 10%, the annual premium drops off after 11 years. If you put down 10% or less, which includes the standard 3.5% minimum, you’ll pay it for the entire life of the loan unless you refinance into a conventional mortgage later.
What to Compare When Shopping FHA Lenders
Since FHA loan terms are standardized by the government, you might assume every lender offers the same deal. They don’t. Here’s where lenders differ:
- Interest rates: FHA sets the insurance rules, but each lender sets its own interest rate. Shopping three to five lenders can easily save you thousands over the life of the loan.
- Origination fees and closing costs: Lenders charge different amounts for processing your loan. Ask for a Loan Estimate from each lender so you can compare costs side by side.
- Credit score overlays: Some lenders approve borrowers at FHA’s 500 minimum, while others won’t go below 620. If your credit is on the lower end, ask about minimum score requirements upfront.
- Processing speed: Non-bank lenders that specialize in FHA loans often close faster than large banks, sometimes by a week or more. If you’re in a competitive housing market, that can matter.
- Customer service: Some lenders assign a dedicated loan officer who walks you through the process, while others route you through a call center. Your comfort level with the process matters, especially if this is your first home purchase.
Getting pre-approved with at least two or three FHA lenders before you start house hunting gives you leverage to negotiate and ensures you’re getting a competitive rate. Pre-approval also shows sellers you’re a serious buyer, which is especially helpful when FHA buyers are competing against conventional offers.