topic FHA Interest Rates in Mortgage Loans

FHA Interest Rates

Anonymous — Sun, 22 Mar 2009 21:13:18 GMT

What is the minimum fico score needed to qualify for the best FHA interest rates?

Thanks in advance!

Re: FHA Interest Rates

Anonymous — Sun, 22 Mar 2009 21:21:00 GMT

I have heard on here that all FHA loans have the same interest rates. But my LO told me that is not entirely true.

He has the power to give anyone over a min of 720 reduced rates. I got 5 1/8 with no points when the FHA rate at this particular place was 5.5% with no points.

Re: FHA Interest Rates

Anonymous — Mon, 23 Mar 2009 16:52:34 GMT

My mortgage broker was able to lock me into a FHA loan for 4.875% with a minimum FICO score of 680 if I close within 30 days. So, it looks like you can get a better FHA rate with higher FICO scores from some lenders.

I wasn't aware of that until I signed the purchase agreement on my new house this weekend.

Re: FHA Interest Rates

Anonymous — Mon, 23 Mar 2009 17:03:22 GMT

Who is your mortgage through, schlebrock?

Re: FHA Interest Rates

Anonymous — Mon, 23 Mar 2009 17:06:22 GMT

Thanks for the sharing of information. I was just wondering if it made more since to reduce my utilization on cc or save for my dp. My midscore is 687, so it appears that I'll get a decent enough rate going fha. I guess at the end of the day, I still don't want cc debt, so I may still pay it down.

Re: FHA Interest Rates

Anonymous — Mon, 23 Mar 2009 17:08:02 GMT

Wow that is a great rate! I locked into a 5% w/ 1 point about 3 weeks ago. I was afraid the rates would rise, which they did a little and now they have dropped again. I wish I had that rate, my ficos are pretty high, mid score is 749.

Re: FHA Interest Rates

Anonymous — Mon, 23 Mar 2009 17:16:24 GMT

I haven't locked my rate yet but my score is 639 and I've been pre-qual. for a loan. I was working with a LO for over a year (I started this process in 2007, quit for a year and started back up in 2009), but I shopped around for my rate. He was giving me a rate of 5.5%, a different lender gave me 5%, so I went back to my first guy and told him the situation. He said he'd give me 5% too (provided rates did not go up). I also asked him that if the rate dropped would he give me a better rate - he said he would even though I do not have perfect credit. I have good credit, my job is pretty stable and I've been with the same company for 6.5yrs.

I'll be doing an FHA loan as well.

Re: FHA Interest Rates

Anonymous — Mon, 23 Mar 2009 19:56:33 GMT

@Anonymous wrote:
Who is your mortgage through, schlebrock?

My mortgage is going to be through a local builder here in San Antonio, Texas. However, I would expect that rate to be available by other lenders across the country.

Re: FHA Interest Rates

DallasLoanGuy — Tue, 24 Mar 2009 02:44:02 GMT

almost every lender out there will offer the same rate at 620 as they will for any higher score.

Re: FHA Interest Rates

DallasLoanGuy — Tue, 24 Mar 2009 02:44:27 GMT

in other words.

620 - 850 = same rate

Re: FHA Interest Rates

Anonymous — Thu, 26 Mar 2009 06:38:02 GMT

Would you mind sharing the contact info. of your loan officer? Thank you.

Re: FHA Interest Rates

Anonymous — Thu, 26 Mar 2009 06:39:31 GMT

Would you mind sharing your loan officer contact info.? Thank you.

Re: FAA Interest Rates

recoverychick — Fri, 27 Mar 2009 03:18:25 GMT

I don't know what the max is, but my lender told me for FHA, 680 was the "magic number". They stared the refi offers with 5.5% with 1.75pts and origination, then went to 5.00% .5pts and no origination. I locked in Tuesday with 4.5% .75pts and 1% origination, all rolled into loan. Down from current 6% refi with them 1 yr ago. TU 721, EX 718, EQ 698 (everyone pulls them). 1 6yr old medical collection $343, 1 5.5 yr old dismissed chapter 13., 6 new accounts 5 mos. old.

Good luck.

Re: FAA Interest Rates

kai_1103 — Wed, 24 Mar 2010 14:44:51 GMT

Hi all- I am concerned about my interest rate and was reading your post. I'm wondering if someone can give me an idea if my costs are lining up. I got the FHA amendment paperwork including the FHA Mortgage Broker Fee Agreement.

I was surprised the numbers didn't really line up with my good faith estimate. Theres a broker's points fee of 1% on this agreement that I have never seen before, plus the 1% origination I knew of, plus a processing fee which is lower than the good faith estimate was. They ad up to about the same thing so I'm not sure if I should be concerned.

Anyone want to share what they think? Or anyone know what the rates are like at the "moment"?

Thanks a million!!!!!!!!!

Re: FAA Interest Rates

ShanetheMortgageMan — Wed, 24 Mar 2010 20:18:46 GMT

The MBFA just further breaks down costs that should have been outlined on the GFE. The new GFE, well, doesn't break a whole lot down, just gives lump sums, which is easier for math, but does leave some people wondering what the costs are all for (which isn't broken down on an official form until closing).

Did you get a good faith estimate that looks like http://www.hud.gov/content/releases/goodfaithestimate.pdf?

If so, can you list the "summary of your loan" section as well as 1 & 2 from page 2?

Re: FAA Interest Rates

kai_1103 — Thu, 25 Mar 2010 15:49:06 GMT

Hi Shane- I got a GFE but it didn't look like that one, but I got it back in August when I put my offer in (short sale). I'm getting a small loan and using local down payment assistance so I figured the broker may get a little more money that typical because of the extra work. Just my guess- only seems fair she is compensated for the extra work. Anyway...

here is the info I think you are asking for.

Purchase price $95,000

Down payment/closing cost assistance $15,000

30 year fixed FHA - not sure what interest rate I will get. Originally 5.5% was on the paperwork but that was August- I am hearing 5% is more like it. My median score is 703 (699 & 721 are others).

From my GFE

Initial loan amt/ base loan amt 83,600

Total loan amt $85,266

Loan origination fee @ 1% $838

PI+MI 484.13+37.41=$522.54

No prepayment, no balloon. None of the other oddities in that Summary of Your Loan section listed.

Processing fee $395

Underwriting fee $200

Admin fee to mortgage company $335

Doc prep fee to mortgage company $150

Page 2

1.) Origination @1% $838

2.) I don't know any of this data

------

Then on my FHA/VA Mortgage Broker Fee Agreement

Broker Fees That You Will Pay Directly:

App fee: 0

Processing fee: $250

Other (origination @1%) $838

Broker points (1%) $838

Total direct broker fees you will pay: $1926

Broker comp that the lender will pay (YSP not to exceed 4%): $3440.64

(Will I ever get to find out what her YSP is? I am seeing she shuoldn't get more than 1% or she's just ripping me off at the interest rate)

When I add up the GFE total it comes to 1918, and the new Mtg broker fee agreemnt came to 1926. Not worried about the difference as much as I am wondering it the Mtg Broker Fee Agreement replaces the costs on the GFE or is it in addition.

And of course I worry I'm getting ripped off. Nice lady but never judge a book...

Thanks Shane!!!

Re: FAA Interest Rates

ShanetheMortgageMan — Thu, 25 Mar 2010 21:28:23 GMT

Yeah, if you started prior to the 1st of this year you can still use the old GFE forms. Yeah it doesn't make sense why the MBFA says 1% origination + 1% broker fee while the GFE just says 1% origination fee without disclosing the broker fee... I'd ask about the MBFA then and why the 1% broker fee isn't also listed on the GFE, if she says it's not going to be charged then ask for a new MBFA without the broker fee. The exact amount of YSP will be disclosed on the final HUD-1 statement, but it's a little late to negotiate things at that point. Your loan amount is small, but if it's not too involved then a 1% origination fee + 1% in YSP + processing should be sufficient. You can ask the broker how much in YSP are they looking to make, and the YSP amount is locked in when your rate is locked.