Who determines interest rates on FHA home loans?

Hello I wanted to know if the Bank,Credit Union, or FHA determines the interest rate of a FHA Loan? I filed bankruptcy in 2011 and my 2 years discharge will be up in July 2013. So far my 3 fico scores are 687,653,&632. I have tried to contact a loan officer with my credit union and he was kind of snobby acting. Then I called another Credit Union to get some advice and the loan officer never called me back. So i talked to a Loan officer at US bank and he was very nice and helpful and treated me like a human being despite my past financial problems. however I been told that it would be better to get home loan through credit union. Is this true?

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  • Bob
    Lv 6
    7 years ago
    Favorite Answer

    FHA rates are set by the market, and lenders can charge what the market will bear. FHA sets the standards for approval but has no input on the interest rate or fees charged by the lenders.

    You really can't make a general statement that any one type of lender is the best. I work for a mortgage banker and our company handles the mortgages for a handful of area credit unions, so if they think the credit union is the best it really means they think we are. When I worked for a broker we tried to have a variety of lending sources since no single lender had the best programs across the board. U.S. Bank was always a first class organization to work with.

    You are only a little more than 3 months away from qualifying for an FHA loan, which also means the same amount of time for some loan officer to be fortunate enough to work with you. If you called me right now I would offer to review your credit report to look for ways to get your median score to 660 or above sou you would qualify for better pricing when the time comes. There are many caring and professional loan officers available so you don't need to waste your time on a jerk that won't return your calls.

    Source(s): Licensed Loan Officer in Ohio
  • Buffy
    Lv 6
    3 years ago

    For Finance and credit solutions I always recommend this website where you can find all the solutions. http://SMARTFINANCESOLUTIONS.NET/index.html?src=xq...

    RE :Who determines interest rates on FHA home loans?

    Hello I wanted to know if the Bank,Credit Union, or FHA determines the interest rate of a FHA Loan? I filed bankruptcy in 2011 and my 2 years discharge will be up in July 2013. So far my 3 fico scores are 687,653,&632. I have tried to contact a loan officer with my credit union and he was kind of snobby acting. Then I called another Credit Union to get some advice and the loan officer never called me back. So i talked to a Loan officer at US bank and he was very nice and helpful and treated me like a human being despite my past financial problems. however I been told that it would be better to get home loan through credit union. Is this true?

    Follow 3 answers

    Source(s): For Finance and credit solutions I always recommend this website where you can find all the solutions. http://SMARTFINANCESOLUTIONS.NET/index.html?src=xq...
  • 3 years ago

    With 10% down you may get a 4.875% at right now's fees with a mid fico of 680 (the value shown is for FHA or common) neither truly have distinctive interior the final 2 - 3 weeks. FHA dp is now 3.5% powerful Jan. 09. the two very own loan classes might have MI yet, FHA MI would be greater fee-effective. stable success

  • 6 years ago

    FEDERAL RESERVE BOARD

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  • Anonymous
    7 years ago

    the FHA

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