5.25% lock in rate

[witchypoo]

I just locked in today at 5.25% for my 30 year fixed FHA loan.  I thought it sounded a bit high and when I asked my lender about it, I was told it was because I purchased a HUD home and their rates are higher because not all lender will fund these types of loans.  Does anyone have any info on this?  I just want to make sure I'm not being taken.

The home was one of the $100.00 down homes; cost: $166,000 in the Sacramento, CA area.  My credit scores are average, mid score around 650 now.

thanks!

[ShanetheMortgageMan]

HUD homes should have the same interest rate.  Our rate sheets don't make any differential in rates between the $100 down HUD home program and the regular FHA program.  5.25% is really high by today's rates, should be at least .75% lower in rate.