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The Scary Thing About FHA Interest Rates

fha-interest-ratesWHY WE LOVE FHA

I blog often about why we love FHA financing so much:

(1) Speed – we can close in 14 days.
(2) Flexibility – in regard to credit and debt ratios.
(3) Low down payment – 3.5%.
(4) Condition – properties can be purchased “as is, and no Section I clearance is necessary.”
(5) Interest Rates – FHA rates are low.

WHAT CAN MAKE FHA FINANCING “SCARY”

But here’s the scary part – many mortgage banks believe FHA buyers are either desperate or not “rate-sensitive.”

And, as a result, they significantly inflate their FHA rates to generate more yield premiums or commissions for the bank.

We obviously don’t do this at JVM, or I wouldn’t be blogging about it :).

But, I am shocked by how often I hear horror stories by acquaintances in the industry whose FHA rates are as much ¾ percent higher than ours.

When it comes to FHA interest rates, buyer beware (or just come to JVM in the first place).

Jay Voorhees at (925) 855-4491
Real Estate Broker, CA Bureau of Real Estate, BRE# 01524255, NMLS# 335646