Did You Know?

FHA loans are one of the best options for young, first-time home buyers who have not had as much time to save for a large down payment or establish a high credit score.

Get an FHA Refinance Loan
Get an FHA Purchase Loan
FHALoan.com
Get an FHA Refinance Loan
Get an FHA Purchase Loan
Click to Start Your Refinance or Purchase Loan

Comparing FHA Lenders To Get The Best Deal


Comparing FHA Lenders To Get The Best Deal
While the Federal Housing Administration sets rules for FHA loans, lenders retain some flexibility in determining interest rates, fees, and specific loan terms.

Depending on circumstances, the FHA loan offered by your local bank might not be as competitive as one offered by a credit union or an online lender specializing in FHA products, or vice versa. To find the best rates and terms, you will want to shop around, even among participating FHA lenders. Not all FHA lenders offer the same options.

Here's why comparing FHA lenders is essential.

Interest Rate Variations

Even for FHA loans, interest rates can differ when you compare one FHA lender to another.

This may have several causes, such as the lender's overhead costs, risk tolerance, and targeted borrower profile. A lower interest rate may help you get lower monthly payments and save over the life of your loan.

Fees and Closing Cost Variations

Lenders don't always charge the same fees. Depending on the lender, FHA loans may feature differences in origination fees, appraisal fees, and other costs.

Shopping around allows you to identify lenders who offer more competitive fees or are willing to negotiate certain costs.

Unique Loan Features and Terms

While all FHA loans share core characteristics, lenders might offer variations in loan terms. You may have access to down payment assistance programs, closing cost credits, or flexible debt-to-income ratio requirements.  

Not All FHA Lenders Offer the Same Products

In the same way that not all lenders offer loans for all home types, not all FHA lenders offer all FHA loan options. Are you looking for a condo loan in a rural area or a mobile home loan in a busy metropolitan zone? Depending on the demand, some loan options may not be offered.

What To Know About FHA Loan Mortgage Rates

Some lenders have lower overhead and, subsequently, lower pass-down costs. These lenders may be able to offer more competitive interest rates. Online lenders, for example, typically have lower overhead than traditional banks. Will you find the right options for you at an online bank? Or do you need an in-person experience?

Economic conditions like inflation and the Federal Reserve's monetary policies influence interest rates across all loan types, including FHA loans. This may be a factor depending on when you start your house-hunting process.

The length of your loan term can also affect the interest rate. Generally, shorter-term FHA loans have lower interest rates than longer-term loans.

Read the Fine Print

Do you think you have found the right lender? Before you commit, carefully review the terms and conditions, including mortgage insurance requirements, prepayment penalties, and other important details. Don't hesitate to negotiate to secure the best possible terms.

If you've received a stronger offer from another lender, use it as leverage to negotiate a lower interest rate or reduced fees.
See Your Credit Scores From All 3 Bureaus
See Your Credit Scores From All 3 Bureaus

FHA Loan Articles

The FHA Streamline Refinance Mortgage

The FHA Streamline Refinance allows mortgage holders to refinance their home loan without going through the process of second appraisal. Since this is a step that was completed with the first FHA mortgage, the FHA waives it for the refinance

Benefits of an FHA Loan

Making the decision to buy a house is a big one, followed by the choice of which house to buy. The next biggest decision you make is going to be the type of home loan you need to go through with the purchase. One option for financing your home is an FHA loan.

Tips for Buying Your First Home

Most first-time homebuyers decide on purchasing a home at least a year in advance, sometimes even a couple of years ahead of time. The earlier you make a decision to buy a home, the more time you have to save up for your down payment.

Getting Approved for an FHA Loan

While an FHA home loan is a good option for first-time homebuyers who don’t have enough money saved for a large down payment, it’s important to understand the ins and outs of the FHA guidelines, and what it takes to get approved as a borrower. 

Is it the Right Time for an FHA Refinance?

With historically low interest rates, the mortgage industry has seen a sharp uptick in refinances. Taking advantage of the current market might be in your best interest and could lower your monthly payment significantly. Don’t forget that refinancing a mortgage comes with closing costs.

FHALoan.com is not a government agency. We do not offer or have any affiliation with loan modification, foreclosure prevention, payday loan, or short term loan services. Neither FHALoan.com nor its advertisers charge a fee or require anything other than a submission of qualifying information for comparison shopping ads. We do not ask users to surrender or transfer title. We do not ask users to bypass their lender. We encourage users to contact their lawyers, credit counselors, lenders, and housing counselors.

SecureRights Advertiser Contact Information