A FHA mortgage loan has a very low down payment requirement of around 3.5%. Most borrowers expect to obtain a FHA fixed mortgage rate loan.  The fact that your loan will be FHA approved and insured may result in a slight reduction in interest rates or mortgage insurance cost as compared to a conventional loan.

FHA loans also have insurance costs to the lender, as do most mortgages with a down payment of less than 20%. In the case of the FHA, however, those insurance payments are made to HUD instead of a private mortgage insurance company. On an FHA loan the borrower will be charged an insurance premium between 1.5% – 3.0% of the mortgage amount and the yearly payments thereafter will be between 0% and .55% of the mortgage value. 

FHA Mortgage Rates can and will vary between lenders.  FHA rates change daily and are based on Ginnie Mae bonds sold on Wall Street.  On top of what Wall Street wants then lender has to make a profit on the loan.  Depending on their profit requirement will determine the interest rates on FHA loans that they offer the public.

This is basically why you will see differences in the  FHA loans rates among different lenders.  Lender “A” may require a certain yield that is different than lender “B”. 

Thus it’s advisable to educate yourself on the FHA loan rates today if you intend to  apply simply because fha loans interest rates today will not be the same as yesterday’s or tomorrows.