Are you allowed to use discount points on Sonyma or FHA loans?

[superdesi]

The only thing I don't like about FHA is the mandatory MIP regardless of what your LTV is.....but are you allowed to use discount points to lower the rate?

[BrianB_The_Loan_Professor]

Noit is very black and white - there is no way around the upfront (which is now a lower amount) and the only way to avoid the monthly is to have 10% down for a 15 or 20% for a 30 and  then you would probably just be better to go conventional and avoid the upfront fee,

Brian

[superdesi]

Thanks for replying Brian.

I have well over 20% to put as downpayment so I guess FHA would not be good if they won't allow me to buy down the interest rate by paying points.

As far as Sonyma is concerned,   they are currently adverstising a 4% APR on a 30 year fixed.   That beats all the other conventional rates in my area for a 30 year fixed.  

I'm mainly interested in buying down the rate as low as possible.   Any ideas?

[ShanetheMortgageMan]

I'd be surprised if SONMYA doesn't have a rate buy down option, I'd give one of their approved lenders a call.