680 Credit Score FHA RATE

[ezdriver]

Make sure to differentiate lockable rate quote vs non-lockable rate quote. Also lock time period is a factor. A 30-day lock will have a better rate than a 90-day lock. As always, the devil hides in the details.

[Ragelog]

I have a 35 day locked rate of 3.5% with a 685 middle score. Does the 4.25% include the PMI? as that could explain why it is higher. Or is the .85 PMI in addition to the 4.25%?

[Anonymous]

If you aren't receiving any lender credits towards closing costs, a 3.625%-3.875% should be expected for FHA in the 680 range.

[Anonymous]

What are lender credits?

[StartingOver10]

---

@Anonymous wrote:

What are lender credits?

---

Lender pays some or all of your closing costs. When you look at the Loan Estimate, do you see any credits from the lender for closing costs that are normally buyer/borrower closing costs?  How the lender gets the funds to pay those credits, if applicable, is to charge you a higher rate and take the premium they make off the loan (sale) to pay your some of your closing costs. 

[Anonymous]

I signed my loan papers on feb 16th. Mid score 702. 30 year locked in rate of 3.25%. Im putting down 3.5% and seller is paying closing cost.

[StarraeAday1]

We're in that same score range and just locked in yesterday to 3.5% on our new FHA loan. The quote sheet said 4.125% because the lender thought he had to help with closing costs. Since we can pay them ourselves, we got the much lower rate. We were SO excited. Closing on St. Patrick's Day!