Understanding FHA Rate Variations Across States: 2025 Insights
State Texas Florida California Georgia North Carolina Arizona Ohio Tennessee Indiana Pennsylvania South Carolina Illinois Michigan Alabama Virginia Missouri Colorado Maryland New Jersey New York Kentucky Louisiana Nevada Oklahoma Washington Utah Arkansas Oregon Mississippi Minnesota Massachusetts New Mexico Wisconsin Kansas Idaho Puerto Rico Connecticut Iowa Nebraska West Virginia Delaware Maine Rhode Island New Hampshire Montana South Dakota Wyoming North Dakota Alaska Hawaii District of Columbia Vermont Guam Virgin Islands of the U.S.
Avg FHA 2025YTD Rate 5.90% 6.04% 6.20% 6.24% 6.21% 5.95% 6.52% 6.29% 6.44% 6.44% 6.15% 6.53% 6.52% 6.21% 6.36% 6.43% 6.08% 6.39% 6.38% 6.42% 6.40% 6.36% 6.18% 6.30% 6.35% 6.16% 6.33% 6.24% 6.31% 6.46% 6.37% 6.24% 6.53% 6.49% 6.04% 5.87% 6.42% 6.53% 6.39% 6.45% 6.18% 6.30% 6.44% 6.47% 6.13% 6.12% 6.29% 6.25% 6.32% 6.20% 6.32% 6.48% 6.33% 6.35%
The FHA Interest Rates by State (2025 YTD) map shows rates ranging from below 6% in Texas to mid‑6% levels in Ohio and Illinois. These differences reflect local lending practices. In Texas, large builders frequently use rate buy-downs in sales contracts and loans through affiliated lenders or Joint Ventures, resulting in lower average rates that set local benchmarks. This pattern demonstrates how buydowns influence borrower costs and regional pricing, and ultimately, affordability.
For housing finance professionals, the data clarifies how market structures affect rate outcomes and credit access.
Nationally, FHA loans remain cheaper than conventional loans measured at note rate (before fees, points, and credits): 6.23% vs. 6.69% for all loan purposes. Understanding these variations aids in evaluating loan programs and competitive dynamics.
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