What are interest rates for FHA loans? El Cajon, CA
This is a common question asked of loan officers the nation over. The answer is....well....I need more information. In the old days we used to say "I need more information" because we were trying to sell our services before the person got our rate and hung up the phone.
Today we are actually unable to accurately make a quote based on the question, What are interest rates for FHA loans?, without first determining a few qualifying factors.
Here are some basics you can expect to answer when asking What are interest rates for FHA loans? :
1) Do you know your credit score? Interest rates for FHA loans are impacted by your credit score. A person with a 620 credit score is not going to have the same interest rate for an FHA loan as a person with a 720 credit score.
2) Do you know how money you would like to borrow? The loan amount will have a direct impact on the interest rate for an FHA loan. Basically, if the loan amount is higher than $417K in a high balance county (for example, San Diego County, CA has a high balance loan limit of $697,500) then you can count on your interest rate for an FHA loan to be higher.
3) Do you need to work with a NICHE lender because your credit or qualifications are not conforming? The FHA tell us that it is up to our determining factors to decide if you qualify for an FHA loan or not. This gives a lender much leeway to make decisions about how risky they want to get when approving FHA loans within certain guidelines. If you need to approach a lender that makes loans to people with recent bankruptcies that are within FHA guidelines but outside the normal threshold for most banks then you can count on paying a higher interest rate for an FHA loan.
FHA loans are very liberal when compared to the main stream supply of funds to borrow for buying a home. Interest rates for
FHA loans are also extremely low because the loans are guaranteed by the full faith and credit of the US Government. The bank that lends the money is protected and insured by our tax dollars.
What are interest rates for FHA loans? El Cajon, CA
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