What are todays FHA loan rates?

As of March 2026, FHA 30-year fixed rates start at 5.750% and FHA 15-year fixed rates start at 5.500%.

Are FHA rates lower than conventional?

Yes. FHA rates are typically 0.25-0.50% lower than conventional rates due to the FHA guaranty reducing lender risk.

FHA Loan Closing Costs 2026 — What to Expect

QUICK ANSWER — FHA closing costs are typically 2-5% of the loan amount ($8,000-$20,000 on a $400K home) plus 1.75% upfront mortgage insurance premium ($7,000). The seller can pay up to 6% of the purchase price toward buyer closing costs. Valley West Mortgage charges zero application and processing fees.

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COSTS

FHA Closing Cost Breakdown

On a $400,000 FHA loan in Las Vegas:

Upfront MIP (1.75%)$7,000

Origination fee$0*

Appraisal$500-$700

Title insurance + escrow$2,000-$3,500

Prepaid taxes + insurance$3,000-$5,000

Recording fees$100-$200

Estimated Total$12,600-$16,400

*Valley West charges $0 application and processing fees. Upfront MIP can be financed into the loan.

FAQ

Questions? Answered.

Typically 2-5% of the loan amount plus 1.75% upfront MIP. On a $400K loan, expect $12,600-$16,400. The upfront MIP can be financed into the loan so you do not pay it out of pocket.

Yes. FHA allows the seller to pay up to 6% of the purchase price toward buyer closing costs. On a $400K home, that is up to $24,000 — more than enough to cover all closing costs.

No. Valley West Mortgage charges zero application fees and zero processing fees. As an independent broker, our fee comes from the lender side — you pay nothing extra compared to going directly to the lender.

The upfront MIP (1.75%) can be financed into the loan. Other closing costs generally cannot be rolled in unless the appraised value exceeds the purchase price, allowing you to finance the difference.

Negotiate seller concessions (up to 6%), use down payment assistance programs, choose a lender with no application fees (like Valley West), and compare title companies. Lender credits can also offset costs in exchange for a slightly higher rate.