Jump to content

FHA Interest Rate


Coming Clean
 Share

Recommended Posts

I was told by my broker that I can get a FHA loan and that that would be the best type of loan for me.

Which I agree, but why when I asked for the interest rate she told me 6.875% and I went to the website and it said 5.875% (at that time - it's 5.75% now - http://www.nchfa.com/)?

Why the extra 1% shouldn't I be getting the 5.875%?

How do I know when I'm not getting taken for a ride?

Wouldn't I be able to afford more of a house with the lower rate?

Link to comment
Share on other sites

6.875% seems high, but depending on your loan amount, score and the lender's policies & procedures, it could be on target... have you tried talking to other FHA approved lenders or brokers?

Are you sure http://www.nchfa.com/ is the same thing as FHA? It appears it's a state sponsored program which has income limitations to be met (like can't make more than $XX,XXX) or geographic limitations (must buy in certain economically distressed areas), and not an FHA loan program (which doesn't have income limitations, only loan amount limitations).

Link to comment
Share on other sites

you're right, they are not the same. i didn't think about that.

I have not check with other FHA loan providers, but I will now. But can I also contact FHA to check with them to be sure I am getting quoted the right rate.

And with the rates coming down, I would think I could get a lower rate. My scores are okay and rising.

thanks so much, you are very informative.

Link to comment
Share on other sites

FHA doesn't quote rates, so they'll have no clue if the rate you are being quoted is the "right" rate... but the individual you talk to might have an idea if the rate you are being quoted is way out of line (not sure if they are even legally permitted to give an opinion on that though). You can come here and bounce any information off us mortgage professional's though, we'll guide you in the right direction. FHA isn't score sensitive, although some lenders have a rate adjustment if your score is below a 550 or 580 (so that would be a good preliminary question to ask them).

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.