Cheapest Home Loans 2026: Lowest Rates by Loan Type
VA loans at 6.49% with 0% down are the cheapest. FHA at 6.38% for lower credit. Compare all options by rate, down payment, and credit score — see your exact rate in 60 seconds.
Lowest Rate
6.38% FHA
Lowest Down
0% VA/USDA
Min Credit
580 FHA
Avg 30-yr
6.66%
Cheapest Home Loan Rates by Type (September 2026)
Rates below are national averages for September 2026 (Freddie Mac PMMS). Your actual rate depends on credit score, down payment, and lender. Compare lenders here to see your exact rate — no credit impact.
| Loan Type | Rate | Down Payment | Min Credit | PMI | Best For | Apply |
|---|---|---|---|---|---|---|
| VA Loan ⭐ | 6.49% | 0% | 580 | None | Veterans & active military | Get Rate → |
| USDA Loan | 6.55% | 0% | 640 | 0.35% | Rural & suburban buyers | Get Rate → |
| FHA Loan | 6.38% | 3.5% | 580 | 0.55% | First-time buyers, lower credit | Get Rate → |
| Conventional 15-yr | 5.95% | 5-20% | 620 | None at 20% | Buyers with 740+ credit | Get Rate → |
| Conventional 30-yr | 6.66% | 3-20% | 620 | None at 20% | Most common loan type | Get Rate → |
| Jumbo Loan | 6.75% | 10-20% | 700 | None at 20% | Loans above $806,500 | Get Rate → |
Rates shown are APR. Monthly payment examples based on $400K loan, 30-year term, excluding taxes and insurance.
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Get My Rate →Cheapest Rates by Credit Score
Your credit score is the single biggest factor in your mortgage rate. Here's how rates change by tier:
| Credit Score | Conventional | FHA | VA | Notes | Apply |
|---|---|---|---|---|---|
| 740+ | 6.66% | 6.38% | 6.49% | Best rates — qualify for everything | Get Rate → |
| 700-739 | 6.79% | 6.38% | 6.49% | 0.13% higher than top tier | Get Rate → |
| 680-699 | 6.91% | 6.50% | 6.61% | 0.25% higher — still good | Get Rate → |
| 620-679 | 7.16% | 6.75% | 6.87% | 0.50% higher — FHA often cheaper | Get Rate → |
| 580-619 | N/A | 7.00% | 7.12% | FHA is your best option | Get Rate → |
| 500-579 | N/A | 7.50% | N/A | FHA only, 10% down required | Get Rate → |
If your credit is below 680, FHA loans are usually cheaper than conventional. Veterans should always check VA loan eligibility first — 0% down, no PMI.
5 Ways to Get the Cheapest Mortgage
Compare 3-5 Lenders
Save $$95,000Rates vary by 1%+ between lenders. On a $400K 30-year loan, 1% = $95K. Get quotes from a bank, online lender, and credit union.
Boost Credit to 740+
Save $$72,000Going from 620 to 740 saves ~0.50% rate. On $400K over 30 years = $72K. Pay down cards to 30% utilization, dispute errors, avoid new credit.
Put 20% Down
Save $$36,000Avoid PMI ($150-400/month). On a $400K loan, 20% down saves $108K in PMI over the loan life. If you can't do 20%, aim for 10%.
Choose 15-Year Term
Save $$158,00015-year rates are ~0.50% lower. Payment is higher but you save $158K in interest on a $400K loan. Only if you can afford $3,363/mo.
Buy Discount Points
Save $$45,0001 point ($4K) lowers rate 0.25%. On $400K, that saves $45K over 30 years. Break-even: 61 months. Worth it if you'll stay 5+ years.
Cheapest Mortgage Lenders September 2026
Rocket Mortgage
6.625%Conventional — Best for fast approval
Largest online lender. 30-day close. 620+ credit. Good for conventional and FHA.
Veterans United
6.49%VA Loan — Best for veterans
VA-specialist. 0% down, no PMI. 580+ credit. Free VA pre-approval in 15 minutes.
Better.com
6.50%Online — Best online rates
Fully digital, no lender fees. 620+ credit. 3% down conventional. Close in 21 days.
Navy Federal CU
6.49%VA/Conventional — Best credit union
Members only. VA 0% down. No PMI ever. 640+ credit. Rates often 0.25% below banks.
Want to compare all 50+ lenders at once? Get pre-approved and see rates from multiple lenders →
Cheapest Home Loan FAQs
What is the cheapest home loan in 2026?
The cheapest home loan in 2026 is a VA loan at 6.49% APR with 0% down payment and no PMI. For non-veterans, USDA loans at 6.55% with 0% down are cheapest, followed by FHA at 6.38% with 3.5% down. Conventional loans at 6.66% are cheapest for buyers with 740+ credit and 20% down. Compare all loan types and find your cheapest rate →
How do I get the lowest mortgage rate?
5 ways to get the lowest rate: (1) Compare 3-5 lenders — rates vary by 1%+. (2) Boost credit to 740+. (3) Put 20% down to avoid PMI. (4) Choose a 15-year term (0.5% lower than 30-year). (5) Buy discount points (1 point = 0.25% lower rate). The biggest lever is comparing lenders — a 1% difference on a $400K loan = $95,000 over 30 years. Get pre-approved and compare 50+ lenders in 60 seconds →
What credit score gets the best mortgage rate?
740+ gets the best conventional rates. 700-739 gets rates 0.125-0.25% higher. 620-699 gets rates 0.5-1% higher. FHA loans: 580+ gets 3.5% down, 500-579 needs 10% down. VA loans: 580+ typically. Improving from 620 to 740 can save $200+/month on a $400K loan. See which lenders offer the best rate for your credit score →
Are online lenders cheaper than banks?
Online lenders are often 0.25-0.50% cheaper than traditional banks due to lower overhead. However, credit unions sometimes beat both. The cheapest option depends on your loan type, credit score, and location. Always compare at least 3 lenders — one bank, one online, one credit union. Compare online lenders, banks, and credit unions side-by-side →
What is the lowest down payment for a cheap mortgage?
VA and USDA: 0% down. FHA: 3.5% down (580+ credit). Conventional: 3% down (620+ credit). However, putting less than 20% down means paying PMI ($100-400/month), which increases your effective rate. The cheapest total cost is usually 20% down + conventional loan. Check FHA and low-down-payment loan options →
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