7 crucial facts about FHA loans
Lender must be FHA-approved
Because the FHA is not a lender, but rather an insurance fund, borrowers need to get their loan through an FHA-approved lender (as opposed to directly from the FHA). Not all FHA-approved lenders offer the same interest rate and costs -- even on the same FHA loan. That's another reason Bott says borrowers should shop around.
"We encourage consumers -- from a cost, service and underwriting standard -- to shop around many lenders or mortgage brokers to make sure they understand what the best fit is for their particular situation," she says.