If you’re a first-time homebuyer or someone with less-than-perfect credit, an FHA loan can make homeownership more attainable. But knowing where to get an FHA loan is just as important as understanding what it is. This guide walks you through the best places to apply, the benefits of each option, and how to choose the right lender for your situation.

What is an FHA loan?

An FHA loan is a mortgage backed by the Federal Housing Administration (FHA). It’s designed to help borrowers with lower credit scores, smaller down payments, or limited financial history buy a home. Because the loan is insured by the FHA, lenders are more willing to approve applicants who may not qualify for a conventional mortgage.

Borrowers can put as little as 3.5% down if their credit score is at least 580. Those with scores between 500 and 579 can still qualify with 10% down. Closing costs and mortgage insurance premiums apply, but FHA loans remain one of the most accessible home loan options for first-time buyers.

Where to get an FHA loan

If you’re wondering where to get an FHA loan, the answer is simple: from any lender approved by the FHA. The FHA itself does not lend money — it only insures the loans. This means you need to work with an FHA-approved lender such as a bank, credit union, mortgage broker, or online lender. Let’s break down each option.

Banks

Traditional banks are one of the most common places to apply for an FHA loan. Many large national banks, as well as smaller regional institutions, are FHA-approved. Working with a bank has several advantages:

• Established reputation: Large banks often have decades of experience in the mortgage industry.
• In-person service: If you prefer face-to-face interaction, banks provide branch locations where you can meet with a loan officer.
• Bundled services: If you already bank with them, you may benefit from relationship discounts or convenience by keeping all accounts in one place.

The downside is that banks may have stricter internal lending standards than the FHA minimums. While the FHA might allow a 500 credit score, some banks set their own “overlays” that require higher credit scores or lower debt-to-income ratios.

Credit unions

Credit unions are member-owned financial institutions, and many are FHA-approved lenders. They can be an excellent option if you’re searching for where to get an FHA loan. Perks include:

• Member-focused: Credit unions typically prioritize member service over profit.
• Lower fees: They often charge lower origination fees compared to large banks.
• Community connection: Local credit unions may better understand the housing market in your area.

To borrow from a credit union, you generally need to become a member, which may require living in a certain area or working for a specific employer. Once you’re a member, however, you may benefit from more personalized service and competitive rates.

Mortgage brokers

Mortgage brokers don’t lend money directly. Instead, they connect borrowers with a wide range of lenders, including those offering FHA loans. Here’s why a broker might be the best answer to where to get an FHA loan:

• Access to multiple lenders: A broker can shop around on your behalf.
• Tailored options: They may find lenders willing to work with your unique financial situation.
• Convenience: Brokers handle much of the paperwork and communication with lenders.

The tradeoff is that some brokers may charge additional fees for their services. Still, for borrowers who want the widest range of FHA loan options, brokers can save time and stress.

Online lenders

In recent years, online lenders have become one of the most popular answers to the question about where to get an FHA loan. Companies that operate primarily online can process applications quickly and often provide competitive rates. Benefits here include:

• Speed and convenience: You can apply and upload documents entirely online.
• Rate transparency: Many online lenders provide prequalification tools with instant rate quotes.
• Accessibility: Online lenders often serve borrowers nationwide.

However, you won’t have in-person support. If you value a physical branch or want to build a relationship with a local lender, online-only options may not be ideal.

How to choose the right FHA lender

Not all FHA lenders are created equal. Once you know where to get an FHA loan, the next step is choosing the lender that’s best for you. Here are some factors to consider:

• Interest rates: Even a small difference in rate can save you thousands over the life of the loan.
• Fees and closing costs: Compare origination fees, application fees, and other costs.
• Credit requirements: Some lenders require higher credit scores than others.
• Customer service: Read reviews and ask about communication styles.
• Loan processing times: Ask how long it typically takes to close an FHA loan with that lender.

Shopping around is essential. Get at least three quotes from different types of lenders — such as a bank, a credit union, and an online lender — before making your decision.

FHA lender requirements

When evaluating where to get an FHA loan, remember that all FHA lenders must follow certain federal rules. For example:

• FHA-approved status: Only lenders approved by the FHA can issue these loans.
• Mortgage insurance premiums (MIPs): All FHA loans require both an upfront premium and an annual premium.
• Loan limits: FHA loans have limits that vary by county. For 2025, the maximum in most areas is $524,225, with higher limits in expensive markets.
• Occupancy requirement: The home must be your primary residence, not a second home or investment property.

While lenders must follow these FHA rules, they can also add their own stricter requirements (the overlays we mentioned earlier). That’s why shopping around is so important.

When to consider an FHA loan

FHA loans aren’t for everyone, but they are a strong option in certain situations. Specifically, they’re often a good fit for:

• First-time buyers: If you don’t have a long credit history, an FHA loan can open the door to homeownership.
• Low down payment: If you can’t afford 20% down, FHA lets you buy with as little as 3.5%.
• Credit challenges: FHA loans are available to borrowers with scores as low as 500.

On the other hand, if you have excellent credit and enough for a large down payment, you may be better off with a conventional loan that doesn’t require mortgage insurance for the entire term.

Finding the right FHA loan for you

When asking where to get an FHA loan, the short answer is: from any FHA-approved lender. But the best answer depends on your unique situation. Banks, credit unions, mortgage brokers, and online lenders all offer FHA loans, each with their own advantages.

The most important step is to compare multiple lenders. Don’t just look at the advertised rate — consider fees, service quality, and the overall borrowing experience. Taking the time to shop around could save you money and stress in the long run.

Ready to explore your FHA loan options?

Finding the right FHA lender can feel overwhelming, but you don’t have to do it alone. Rates.Now makes it simple to compare FHA loan offers from top lenders in one place. Whether you want the convenience of an online lender, the personal touch of a credit union, or the reliability of a national bank, Rates.Now helps you see your options side by side so you can make the best decision for your future home.

Start comparing FHA rates from different lenders today at Rates.Now.

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