August 2009 Phoenix FHA interest rates? (short sale, mortgage broker, credit score)

[fromcotoaz]

Has anyone recently closed on an FHA mortgage in Phoenix? If so, what was your rate? I have talked to one lender so far, and he is telling me that rates are around 5.5% right now. All the websites I am used to looking at are saying that rates are slightly lower. My friends in other states have closed recently near the 5.0% mark.

I'd like to use this lender for a number of reasons, but if he can't provide me with the best rate, I need a recommendation of someone else to talk to. We are very strong borrowers and should get the absolute best rate there is. Our credit is near 800 and our debt ratio is extremely small, so I know that shouldn't be affecting our rate.

[hechoenchina]

Interesting how there are no responses to this perfectly straighforward question. I would hav ethought that the rats woould have come out of their cages to answer this one.

[Ritchie_az]

I'll let you know what my VA rate is as soon as I lock it in. Should be a couple more weeks.

[crystalys]

Sometimes a rate is only good on a given day for a couple of hours so your friends might have been lucky enough to have a broker who was on top of it at the time and locked them in at that moment. It also depends on what loan "products" or programs the particular lender has access to. Not all lenders or brokers have the same products or programs available to them so they sometimes can't offer you a loan that is comparable or better than another lender or broker, that is why I can't stress enough the advice to "SHOP THE LOAN" prior to committing. I have a client who closed on 7/22/09 and his credit score was in the mid 700's and his rate was locked in at 5.75% about a week prior to closing. No lender has a crystal ball as to what the rate will be at any given time. There are trends as to whether the rate will go up or down...but until the exact time you lock in the rate, you will not know the exact rate you will get.

[ji603]

5.5 w/3.5% down is about par these days. VA and FHA are just a few points higher than 30 year conventional w/20% down.

[Rick Lee]

Pretty sure FHA rates are not determined by your FICO score. At least they weren't when I was in the biz about 10 yrs. ago. Doesn't matter how strong a borrower you or the loan officer thinks you are. Par pricing is what it is. You can pay points or you can bargain with the lender to eat it and cut your rate. I'll be closing on an(other) FHA loan for myself soon, but since I don't have a bank acceptance on the property (short sale) yet, it really doesn't matter what the rate is. Without a closing date, I can't lock in and anything can happen until then.

[crystalys]

Originally Posted by Rick Lee

Pretty sure FHA rates are not determined by your FICO score. At least they weren't when I was in the biz about 10 yrs. ago. Doesn't matter how strong a borrower you or the loan officer thinks you are. Par pricing is what it is. You can pay points or you can bargain with the lender to eat it and cut your rate. I'll be closing on an(other) FHA loan for myself soon, but since I don't have a bank acceptance on the property (short sale) yet, it really doesn't matter what the rate is. Without a closing date, I can't lock in and anything can happen until then.

You are correct...FHA does not look at a FICO score to determine eligibility, but the lender who will be originating and/or servicing the loan definitely will be using it.

[one.person]

Bank of America quoted me 5% last Monday, locked in 5.375% this morning. Standard FHA loan, credit not perfect, no points and no origination fee.

[novsaggi]

I would recommend National City, part of PNC Bank.
Banks nowadays are doing the interest rate match if provided a good faith estimate from other bank.
So I found National City as lowest and got the price match from my lender.
Hope this helps u.
My recommendation would be
No orignation fee
& No mortgage broker fee

[fromcotoaz]

Thanks for all the responses. This information is very helpful.