Who Are The Best Mortgage Lenders For An FHA Mortgage?

If you have taken any time in recent months to look at purchasing a home you have probably found yourself asking the question, “where can I find an FHA mortgage, and am I dealing with the best mortgage lenders.”

Best FHA Mortgage Lenders

Which FHA Mortgage Lenders make it look easy?

Wells Fargo and Bank of America are two of the nation’s largest banks with mortgage departments set up for the masses to try to find an FHA mortgage, but they may not give you the best rates.

Is the Government Among the Best Mortgage Lenders?

FHA loans are not achievable directly from the Federal Housing Authority because FHA is a secondary lender. That means you must go through a bank or a mortgage broker to get an FHA mortgage.  Mortgage lenders and banks can quote FHA loan rates and give you an idea of the costs associated with an FHA loan as compared to a conventional loan that the bank may be able to offer directly.

The best mortgage lenders will give you a variety of options and rates for par loans and may suggest alternatives to buy down the interest rate on a particular loan product.  Doing your homework up front can save you a ton of headache later.

For example, you do not want to have a mortgage broker ask you to pay for an appraisal up front to make sure the value of the home is high enough for the mortgage company to lend on it. To put it another way, every home that gets a loan whether it is an FHA mortgage or conventional will have to have an appraisal completed on it before closing.  However, the mortgage broker or bank should cover the cost of that appraisal until the time of closing on the loan.  That is the way the best mortgage lenders operate.

FHA Mortgage vs Conventional Loan

The main difference between a conventional loan and an FHA Mortgage is the down payment and the PMI.  PMI is private mortgage insurance, and it is a monthly fee now required on every FHA loan for the life of the mortgage. In addition, there is an up-front cost of 1.75% of the loan that is tacked on initially for PMI on every FHA mortgage.

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