Current Mortgage Rate Environment
The Federal Reserve's monetary policy continues to influence mortgage rates in 2026. With the federal funds rate holding in the 4.25-4.50% range, 30-year fixed mortgage rates are currently averaging 6.5-7.0%. Use our Mortgage Calculator to estimate your monthly payment.
How Much House Can You Afford?
The 28/36 rule remains the gold standard: your monthly housing costs should not exceed 28% of your gross monthly income, and total debt payments should stay under 36%. For a household earning $100,000 annually, that means a maximum monthly housing payment of $2,333.
FHA vs. Conventional Loans
| Feature | FHA Loan | Conventional Loan |
|---|---|---|
| Down Payment | 3.5% minimum | 3-20% |
| Credit Score | 580+ | 620+ |
| MIP/PMI | Upfront + annual MIP | PMI if < 20% down |
| Loan Limit (2026) | $498,257 (most areas) | $766,550 (conforming) |
First-Time Homebuyer Programs
Many states offer first-time homebuyer assistance programs including down payment grants, reduced-rate mortgages, and tax credits. The FHA 203(k) renovation loan allows you to finance home improvements into your mortgage. VA loans (for veterans) and USDA loans (rural areas) offer 0% down payment options.
WealthGrid Hub is an independent research publisher. This guide is for educational purposes. Consult a licensed mortgage professional for your specific situation.