Mortgage Insurance Premiums. To qualify, the FHA charges single upfront mortgage insurance payments (MIP) along with annual mortgage insurance premiums. The upfront MIP are the same for all, which is 1.75% of the loan amounts and can be financed directly into the mortgage loans.
Credit score has a bigger impact on mortgage rates than loan type. If you have a high credit score, your FHA loan rate will probably be lower than someone with a low credit score. FHA Loan Pros.