FHA Interest Rates?? Can I verify?

Arent FHA Interest Rates determined by the government?

My lender is trying to underwrite my paper work today and lock in my rate at 7.375%! I am looking all over and the average is 6%-7% at most!

Am I missing something, is there a place where I can check this rate??? I am building a house under the Nehemiah $0 down program in Cypress, TX. He tells me this is the rate for this program. Seems a bit HIGH!

Update:

I meant market...not government. LOL

1 Answer

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  • glenn
    Lv 7
    1 decade ago
    Favorite Answer

    FHA rates are determined thru competition, The same as groceries and cars. If you are going one of the DPA programs like Nehemiah then your rate will be higher than normal rates because the risk for the investor is much higher. A lot of these loans end up in foreclosure. That is why these programs will no longer be offered soon.

    Also the rate you see (if it is on a truth in lending) is not really the rate you are being charged. The "truth in lending" takes into account fees that might be paid by the seller or lender or whatever and figures a rate that the investor is receiving that first year- not the rate the buyer is paying.

    But it could be that you are being taken advantage of. It may be to late to change mortgage companies because the programs will be ended September 30th.

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