203b Loan Interest Rates

All mortgage loans will come with interest. This is how the lender makes a profit. However, the interest rate has nothing to do with the FHA, and everything to do with your risk level as a borrower, and the lender you choose to work with. As a general rule, the lower your credit, the higher your interest rate will be. The better your credit, the lower the interest rate will drop.


To give you a rough starting point, the current interest rates as reported by Wells Fargo at the time of this writing are as follows:

  • 30-Year Fixed Rate: 5.000% Interest Rate 5.015% APR

  • 20-Year Fixed Rate: 4.875% Interest Rate 5.205% APR

  • 15-Year Fixed Rate: 4.375% Interest Rate 5.002% APR

  • 5/1 ARM: 4.250% Interest Rate 4.990% APR

However, also at the time of this writing, US Bank lists the current interest rates as:

  • 30-Year Fixed Rate: 4.950% Interest Rate 5.026% APR

  • 20-Year Fixed Rate: 4.875% Interest Rate 4.978% APR

  • 15-Year Fixed Rate: 4.625% Interest Rate 4.754% APR

  • 5/1 ARM: 5.000% Interest Rate 5.688% APR

As you can see, there is no single rate that applies across the board. The rate you are offered will depend on the lender and on your personal credit situation. Going with an FHA loan will definitely help, and will even allow you to obtain a mortgage loan when you would be denied for a conventional loan. To determine the actual interest rate that you will be charged, you’ll need to work with your lender and then lock in the rates before signing a contract with the seller.