Will the rates for the new higher FHA loans be the same or h

jacktyler16 · Joined: 12 Mar 2008 Posts: 1 1.48 Dollars($)

I want to refinance into one of these higher loan limits FHA. Will I be paying a higher ratae than a regular FHA?

Posted: Wed Mar 12, 2008 6:07 pm Post subject:

Rate will be the same as long as your credit is good. Lenders are now putting a minimum credit score (550-580) requirement on FHA loans and you may get a slightly higher rate if your credit is below 660.

larry · Joined: 27 Jun 2007 Posts: 3328 474.49 Dollars($)

Hi jacktyler,

Welcome to the forum.

FHA is not a score driven program. Rates and terms actually depend on so many things. So you need to post a bit more detail so that we can help you better and give better information.

Best of luck,
Larry

Jessica

Hi Jacktyler,

The FHA loan limit having been raised does not imply that borrowers would be charged higher rate. The rate will depend upon the down payment (if you're buying home), credit record and other qualification factors.

Till now, neither HUD nor the Fannie Mae or Freddie Mac have promised lower rates on the bigger loans. However, if rates are low, it will help more and more borrowers to refinance.

To know what rates you may get, feel free to talk to the community lenders. These lenders have a wide range of programs on offer, so just in case you'd some other option even more favorable that the FHA loan, you can go for it. What I suggest is, send in your request for mortgage quotes so that the community can pass it on to selected lenders. And as soon as the lenders are able to match their profiles with your loan requirement, they shall contact you to offer the quotes.

Regards,

Jessica.

gmakerley · Posted: Fri Mar 14, 2008 10:21 am Post subject:

although fha may not be score-driven, necessarily, many lenders (us included) do require a specific minimum for automated underwriting. in our case, you must have a score of 585 or higher to qualify for automated underwriting; anything below that is a manual underwrite; and that is going to be a difficult approval.

clearly, if a score is below the automated underwriting minimum, compensating factors will be needed. if they are strong enough, and debt ratios, etc. are in line, then a good case can be made for approval.

as for the new limits, i would agree with the above postings - that rates should be no different than with the previously lower limits.

banker0679 · Posted: Sat Mar 15, 2008 3:26 pm Post subject:

to answer your question lol.....

most lenders are imposing higher rates on the higher than normal fha loan limits.

I have seen that most FHA wholesalers are imposing a 2.5% hit on FHA loans higher than 362k. You will need to speak to FHA lender, and it will depend on your loan amount, and county.

gmakerley · Posted: Mon Mar 17, 2008 6:56 am Post subject:

wow...retail, retail, retail! why would anyone pay 2.5% additional by going wholesale? that would be insane (to quote the virginia tech basketball coach - yes, indeed, it is ncaa basketball tournament time!).

we have not been advised of any differential in our rates based on these higher loan limits. i can imagine it happening with conforming loans, but fha? c'mon.

banker0679 · Posted: Mon Mar 17, 2008 7:02 am Post subject:

I foudn out by pricing it out with the lenders. I didn't even get a notification just heard from other loan officers. I went and priced it out, and found the 2.5 hit with every lender i checked.

gmakerley · Posted: Mon Mar 17, 2008 7:28 am Post subject:

wow again

gmakerley · Posted: Fri Jun 20, 2008 10:54 am Post subject:

stop advertising, please. folk like you ruin it for all of the regular posters who abide by the rules.

brian1 · Posted: Sat Jun 21, 2008 3:31 pm Post subject:

Since the post was brought to the top by our friend. I would add that I have not seen any lenders NOT adding a hit for the higher loan amounts. The lowest I have seen is 1 point to fee, Most are at 1.5% or higher.

If anyone knows of a wholesale bank that is less I would appreciate it if you could PM the info on who it is.

Thanks
Brian

banker0679 · Posted: Sat Jun 21, 2008 8:04 pm Post subject:

It also varies on what their starting rate is.
Some lenders are saying 'no price hits' but they're starting at 7% lol

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