topic Do all lenders offer same interest on FHA loans? Do I need to shop around? in Mortgage Loans

Do all lenders offer same interest on FHA loans? Do I need to shop around?

Anonymous — Tue, 19 Apr 2011 15:31:10 GMT

Hello, All

Excuse my ignorance, but now that I am working on rebuilding my credit and my scores, I want to learn all I can before applying for an FHA Loan. I was told that with an FHA loan that all lenders offer the same intereste rate if you qualify. I was also told that whether you have a credit score of 750 or 680 you will still get the same interest rate. Please let me know if this is true or if the people telling me this have no clue. If this is the case, than if I go to one lender and am approved for an FHA loan than why shop around if they all give the same rate? I'm so confused. Please help. Thanks in advance.

Re: Do all lenders offer same interest on FHA loans? Do I need to shop around?

Anonymous — Tue, 19 Apr 2011 17:25:26 GMT

They're saying that you'll get the same rate regardless of your score, not regardless of lender.

I was quoted (on the same day or very near it) 4.25% (FHA), 5.25%(FHA), and 6.25%(conventional). The conventional quote was with my HIGHEST (at the time) score - they only pulled TU and I was told that the rate was that high because my score (708) was low. I believe the 5.25% had a premium on it because it was an FHA loan that involved MSHDA or something. FHA 203(k) rates are higher, as well. In any case, FHA rates do tend to be lower than conventional and I'm pretty darned sure they vary by lender and keep in mind that you'll be paying PMI when you're putting down less than 20%.

Re: Do all lenders offer same interest on FHA loans? Do I need to shop around?

Anonymous — Tue, 19 Apr 2011 21:48:59 GMT

Not all lenders charge the same rates, and not all lenders offer the same rates for different credit scores.