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
