Lender must be FHA-approved5 of 9Because 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. Related Articles:Fixing 3 FHA loan snagsFHA allows house flippingFHA loan costs risingWhat to know on FHA loanRelated Links:Low-down-payment loansUsing the mortgage GFEFind a mortgage rateHow to kill a loan closing advertisement
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.
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