Mortgage Financing Options

Creative Mortgage Financing -- Little or no mortgage payments?

First time homebuyer's, what a great way to get into your first home with little money out of pocket. And possibly little or no mortgage payments. If you aren't worried about living with your tenants, how about looking into a duplex, triplex, or a four-plex.

There are several types of loans that could get you into a multi-family home. But because of the changing market in the last 6 months to a year, the guidelines are much stricter when it comes to credit and money down. One type of mortgage program that is very forgivable in both down payment and credit is the FHA loan program.

 

What does FHA have to offer on these types of properties?

• Usually 2.25% down, not matter how many units. (1-4 units)
• Total of 3% out of your pocket is needed.
• You can get up to 6% seller help.
• No credit scores required, as long as the credit makes sense.
• You can use up to 85% of the rental income to qualify for these types of properties

Now, one thing to keep in mind is that there are FHA mortgage limits depending on what county that you plan to buy in. But, these limits change depending on how many units the property has. The more units attached to the property, the more of a house that you can buy, as long as you can qualify. Don't forget, you can use 85% of the rental income. Keep in mind, you are buying this as a primary house, which means that you have to live in one of the units.

 

Here is a great example: You find a $300,000 house that is a triplex. You can get $900/month per unit (2 units total of income). Your taxes on the property are $4,800/yr and homeowners insurance is $840/yr. (Keep in mind, this is just an example and that taxes and homeowners can be different in different states. Even the purchase price for a triplex can be different.)

 

                                                                                                 

		Rent per   unit
Purchase   price  $300,000		Unit   1   $900
Loan   Amount    $292,250		Unit   2   $900
With FHA MIP     $296,182
Total   Payment /taxes & haz & PMI	$  2,561/month	$2,561   minus $1,800 =
Total   costs including down payment	$13,600	Your   monthly Payment  $761
What you   need maximum in money	$  9,000
Seller can   contribute this amount	$  4,600

Now, keep in mind that you can also do a Nehemiah program with this that possibly could have you bring zero monies to the closing table. For more information on Nehemiah, please read ; Creative FHA financing -- No money out of pocket from the buyer!!! -- Part 1

The Main Positives :

• Cheap mortgage payment (better than renting)
• Other's helping you build equity --  A planning strategy
• sometimes a great starter home that could be an investment property down the road -- A planning strategy
• Little or no monies out of pocket
• Income Needed to Qualify : Even if you have $700 a month in debt, because you can use 85% of the rental income ($1,530), you would only need to prove an income of $69,600 for the year. $5,800/month
• Even though you are using rental income, you can still be a first time homebuyer with this program.
• $17,382 in profit. This is based on the fact if you lived in this property for 5 years. Your principal balance would be $278,800.

The negatives :

You are sort of sharing your property with tenants. (but, keep in mind, you each have your own private entrances. Think of it as a mini apartment complex.) Besides, each type of property is built differently. Your entrance might be in front, one might be on the side, and the other in the back.


Looking for someone that has the knowledge, understanding, and expertise of FHA mortgages; please click here :  FHA Mortgages

Mortgage Advertising -- Is it like a scam?

Maybe Dateline NBC should do an episode on mortgage advertising and the fine print at the bottom of the commercial. You know, the print that is small and doesn't last more than a few seconds. Yes, that fine print. I was inspired to write this because of a comment from Jeff Geoghan, who said that perhaps I should do a HBO series on "desperate loan officers." 

Are you starting to see more TV advertising since the market has slowed down?  What does this mean sometimes. It can mean that some companies need more business. And who pays for these commercials?  The consumer does in one form or another. 

I am seeing commercials from Countrywide, Bank of America, Di Tech (owned by GMAC)and local companies in my area. These commercials will use little marketing ploys just to get the phone to ring. Some will rename a program that every lender in America has just to make themselves stand out and sound like they have reinvented the wheel. Here are some of the hot topic commercials as of now :

• Di Tech --  They state that smart people know what they are looking for, hence why they should call Di Tech. Alright, a good way of making the consumer feel smart and important.
• Countrywide -- The no closing cost loan. No title fees, no bank fees, no closing costs, etc, etc Sounds like a deal that you can't pass up. Sounds free. But wait, free?  How do they make money?  Do you ever see them advertise a rate with this?  No and for good reason. You really don't qualify for such loan. You could, but the rate is higher to absorb these costs mentioned.
• Bank of America -- Their loan is called the no fee mortgage plus loan. Exact same concept as Countrywide's program. They even state on their on-line commercial that why should you pay for mortgage insurance and extra fees. And when I go to their on-line system to give me a rate for these no cost loans, the rates are a little higher.

One thing to remember here. Can some people obtain some of these loans. Yes, there is a possibility, that's if you qualify. What are their qualifications? Very strict, probably not less than perfect credit friendly. And sometimes these specific programs come with conditions. Maybe a credit score?  To pay for these costs, maybe that you have to use their title company, etc, etc.

 

So Jeff, what should I look for? Who should I believe? Of course this is not always an easy question.  Not only should the loan officer be asking you questions, your goals, but you should ask some of your own. Get a feel for the person that you are talking to. Get quotes in writing, which is called a good faith estimate. (GFE)  Sure, this doesn't always mean that it will be correct or accurate.

 

Conclusion :  It's okay to shop, but stick with referrals. If you have gone through this process once before and you had no complaints, go back to that loan officer. At least give them a chance to try and compare your current offer. You might be surprised what this person finds out, since we know what to look for. Or ask for a respected referral from friends, family, or co-workers. Even talk to your realtor about this.

I am not stating that it's bad to shop. Just be careful in what you see and hear. Be very leery of key words.

• I promise
• I guarantee
• No problem
• fast and easy
• and one of my favorites, don't worry

Besides, as I stated once before, who is paying for these so-called commercials?   

 

Looking for someone that has the knowledge, understanding, and expertise; please click here :  Mortgage Financing Options

 

Disclaimer : I am not trying to talk negative about the lenders mentioned above. Just using them as examples. The main issue at hand is do your homework and ask questions. Get someone else to review the information for you. All of this is my opinion based on 14 years in the mortgage industry.

      

 

Mortgage Banker vs Mortgage Broker -- What is the difference???

There has been a lot of talk recently about the difference between a mortgage banker and a mortgage broker. This talk is not just from realtors and consumers, but those in the mortgage industry. And if it seems a little confusing at times to the actual loan officer, just imagine what it might seem like to the average realtor or even the consumer.There are 2 main differences with a 3rd that will be explained later on within this post.

A Mortgage broker acts as an intermediary who sources mortgage loans on behalf of individuals or businesses. Traditionally, banks and other lending institutions have distributed their own products. (from Wikipedia)

A mortgage banker is one who originates, sells, and services mortgages in the secondary mortgage market. Using their own funds to close a loan. (from www.investorwords.com)

The diagram below represents a broker or a banker. It says if the borrower goes to a broker, the broker sends it to a wholesale lender before you can get your house. On the other hand, if you go to the banker, they use their own money. There will be some differences in what kinds of bankers there are that will be explained below.

 

 

 

                                                                        

In the diagram above, you have a borrower that can either go to a banker or a broker to buy or refinance their home. Here is part of the problem when someone might talk about a banker. Many of you think of a local bank who has someone that sits at the bank and can help you with your financing needs, hence they can be called a banker. They have checking & savings accounts, CD's, and other banking specialties.These are your local banks, large or small. But many of these banks don't have loan officers that know many of the programs out there or are not usually creative in saving you money. Some larger known banks would be Wachovia, Chase Manhattan, Commerce Bank (on the east coast) and Wells Fargo. These bankers are large, use their own money, and have experienced loan officers just as brokers. And it is true that brokers account for most of the mortgages that are originated. One main reason though is because it's cheaper to operate as a broker, but this doesn't necessarily  mean that they are cheaper or better. I'll explain why later.

They type of mortgage banker that I am talking about is one who uses their own money but who can sell to other lenders acting as a broker. This can be also known as a correspondent lender. What this banker can do is use their own money from a warehouse line and hold onto your mortgage for a month until they sell it on the secondary market. You have already been locked in with this lender who can then get a bulk price for volume which allows them to still give you very competitive pricing. And these same bankers have all the programs at their finger tips just as a broker does.

The other issue is that your traditional bankers mentioned above, for the most part, can act as a broker on certain types of deals in order to have access to all types of "less than perfect" credit loans. The reason being is that they don't want to service this type of mortgage because of it's risk, so they will act as a broker.And some actually do service these credit risk loans. Also, those that say a true banker can't give you the best deal, is slightly misleading the general public. Their pricing is just as competitive as the broker and can sometimes can be better depending on their volume. This is called units at which time, the more they do, the more they can drive down pricing for their clients.

Conclusion : In my opinion, the problem that I see is that brokers will make it sound like they are cheaper in both rate and cost because they have hundred's of lenders (wholesalers) that they can sell to.They will sometimes swear up and down about this. And you will have bankers that will swear that you aren't getting the best rate because brokers are a middle man. The funny thing is that the money comes from the same place when all said and done. It's priced through Wall Street in regards to pools of money.

So, what's all the hoopla? Each is vying for your business. Meaning that these are sales tactics at times. If you read this whole thing over and over, what is missed the most?  SERVICE - TRUST - KNOWLEDGE - COMMUNICATION This is what you should be looking for and not a bunch of broken promises. 

The honest difference? Besides what was mentioned in the last sentence? Brokers don't underwrite their own loans which means that they can't close their own loans. Now, there will be an argument that brokers can get loans done just as quickly because of their relationships with certain companies. Yes, this can be true at times, but is still a negative in my book. I am a banker that sells our loans on the secondary market which does not affect you, the consumer. So I have many lenders that I can sell to just as a broker. Best of both worlds.

Not only do we underwrite our own loans, but we also close them in-house, using are own money. What does this mean? I have more control. I can usually get things done quicker than the average broker  because I have someone in-house that underwrites and close these loans. And as stated, I have more control because of what I can approve in-house than a broker relying on an underwriter that is not part of their company. But again, this is my opinion of almost 15 years in this industry.

The people that I would be most afraid of are those that advertise like this. (may it be in writing, over the phone, on the internet, or on their web site/profile page)

•  LOWEST RATES...EASIEST TERMS 100% loans also available. Close in 7 days or less. N0 out of pocket expense. Pre-Approval guaranteed in 24 HOURS. CALL NOW!!!

So, what is wrong with the above statement? Anyone that states lowest rates and other phrases such as ZERO expenses/costs and or the word guarantee. These are sales pitches. Again, this is what you want from your lender. SERVICE - TRUST - KNOWLEDGE - COMMUNICATION 

One last thing that you want to make sure your lender can handle is conventional, FHA, VA, and subprime types of loans. You don't want to be on the short end of the stick, depriving you of every program out there, depending on your financing needs. 

 

There has been a lot of talk recently about the difference between a mortgage banker and a mortgage broker. This talk is not just from realtors and consumers, but those in the mortgage industry. And if it seems a little confusing at times to the actual loan officer, just imagine what it might seem like to the average realtor or even the consumer.There are 2 main differences with a 3rd that will be explained later on within this post.

A Mortgage broker acts as an intermediary who sources mortgage loans on behalf of individuals or businesses. Traditionally, banks and other lending institutions have distributed their own products. (from Wikipedia)

A mortgage banker is one who originates, sells, and services mortgages in the secondary mortgage market. Using their own funds to close a loan. (from www.investorwords.com)

The diagram below represents a broker or a banker. It says if the borrower goes to a broker, the broker sends it to a wholesale lender before you can get your house. On the other hand, if you go to the banker, they use their own money. There will be some differences in what kinds of bankers there are that will be explained below.

 

 

 

                                                                        

In the diagram above, you have a borrower that can either go to a banker or a broker to buy or refinance their home. Here is part of the problem when someone might talk about a banker. Many of you think of a local bank who has someone that sits at the bank and can help you with your financing needs, hence they can be called a banker. They have checking & savings accounts, CD's, and other banking specialties.These are your local banks, large or small. But many of these banks don't have loan officers that know many of the programs out there or are not usually creative in saving you money. Some larger known banks would be Wachovia, Chase Manhattan, Commerce Bank (on the east coast) and Wells Fargo. These bankers are large, use their own money, and have experienced loan officers just as brokers. And it is true that brokers account for most of the mortgages that are originated. One main reason though is because it's cheaper to operate as a broker, but this doesn't necessarily  mean that they are cheaper or better. I'll explain why later.

They type of mortgage banker that I am talking about is one who uses their own money but who can sell to other lenders acting as a broker. This can be also known as a correspondent lender. What this banker can do is use their own money from a warehouse line and hold onto your mortgage for a month until they sell it on the secondary market. You have already been locked in with this lender who can then get a bulk price for volume which allows them to still give you very competitive pricing. And these same bankers have all the programs at their finger tips just as a broker does.

The other issue is that your traditional bankers mentioned above, for the most part, can act as a broker on certain types of deals in order to have access to all types of "less than perfect" credit loans. The reason being is that they don't want to service this type of mortgage because of it's risk, so they will act as a broker.And some actually do service these credit risk loans. Also, those that say a true banker can't give you the best deal, is slightly misleading the general public. Their pricing is just as competitive as the broker and can sometimes can be better depending on their volume. This is called units at which time, the more they do, the more they can drive down pricing for their clients.

Conclusion : In my opinion, the problem that I see is that brokers will make it sound like they are cheaper in both rate and cost because they have hundred's of lenders (wholesalers) that they can sell to.They will sometimes swear up and down about this. And you will have bankers that will swear that you aren't getting the best rate because brokers are a middle man. The funny thing is that the money comes from the same place when all said and done. It's priced through Wall Street in regards to pools of money.

So, what's all the hoopla? Each is vying for your business. Meaning that these are sales tactics at times. If you read this whole thing over and over, what is missed the most?  SERVICE - TRUST - KNOWLEDGE - COMMUNICATION This is what you should be looking for and not a bunch of broken promises. 

The honest difference? Besides what was mentioned in the last sentence? Brokers don't underwrite their own loans which means that they can't close their own loans. Now, there will be an argument that brokers can get loans done just as quickly because of their relationships with certain companies. Yes, this can be true at times, but is still a negative in my book. I am a banker that sells our loans on the secondary market which does not affect you, the consumer. So I have many lenders that I can sell to just as a broker. Best of both worlds.

Not only do we underwrite our own loans, but we also close them in-house, using are own money. What does this mean? I have more control. I can usually get things done quicker than the average broker  because I have someone in-house that underwrites and close these loans. And as stated, I have more control because of what I can approve in-house than a broker relying on an underwriter that is not part of their company. But again, this is my opinion of almost 15 years in this industry.

The people that I would be most afraid of are those that advertise like this. (may it be in writing, over the phone, on the internet, or on their web site/profile page)

•  LOWEST RATES...EASIEST TERMS 100% loans also available. Close in 7 days or less. N0 out of pocket expense. Pre-Approval guaranteed in 24 HOURS. CALL NOW!!!

So, what is wrong with the above statement? Anyone that states lowest rates and other phrases such as ZERO expenses/costs and or the word guarantee. These are sales pitches. Again, this is what you want from your lender. SERVICE - TRUST - KNOWLEDGE - COMMUNICATION 

One last thing that you want to make sure your lender can handle is conventional, FHA, VA, and subprime types of loans. You don't want to be on the short end of the stick, depriving you of every program out there, depending on your financing needs. 

Mortgage Related Topics -- What's happening in the mortgage industry......

Some of us have our own ideas of fun. For some, a roller coaster could be lots of fun. For others, it could have been a scary experience or possibly one that we never tried. Why not?  Afraid?  Not a risk taker?

Mortgages....   it already sounds boring, doesn't it. So many topics written about mortgages; what a mortgage is, how to obtain a mortgage, and what kind of mortgage programs are there, can be found all over the internet.

If you are shopping for a mortgage, what do you look for online? If you come across an article or a blog on a certain topic, do you read the whole thing? After half way down, do you go to something else, not knowing that you might have missed some good information? Gee, look, someone even tried having fun with algorithms. (but don't click and read, this is boring stuff)

www.di.unipi.it/fun07/   Picture of algorithms

 

Mortgage Knowledge at its Best shared by Jeff Belonger  I just wanted to share with you some great mortgage related blogs that I have found in the last month as I have searched the internet. Some of these might be very beneficial for you, depending on where you are in your home buying process or if you are just refinancing.

So, please kick back, take your shoes off, and enjoy the show. As you can see, this little fellow isn't going anywhere anytime soon. But Johnny, my nephew, knows how to have fun. Especially when it comes to mortgages, no matter if we are talking about FHA, conventional, VA, or even subprime loans.  PS....  he is great with numbers. Wonder what he'll be when he grows up.

 

 

• Is BofA's 'No Fee Mortgage Plus' a good deal?  by : Jack Guttentag from Inman News    Jack's breakdown of how no cost loans work is explained very well and professionally in this article. His basic viewpoint is that it's almost impossible to determine the rate, even on a program offering no costs, until you speak to a loan officer. And even then, are you still getting a good deal? Jack's summary is that he thinks this type of deal is average.

• Commercial Real Estate Profits - Why Investors Should Be Looking At Multi-Units  by : Kevin Blasi over at Ezine Articles and also here at ActiveRain. Kevin talks about looking at normal to large commercial buildings that might be hard to sell. Instead, using them as rental tools. Another thing mentioned is how much easier it can be to buy rental properties.

• My Lender Needs to Be in Neck-Wringing Distance  by : Brian Brady Brian echoes my exact thoughts on this topic. So many people think that your lender should be next door to you, that they will take care of you. This is not always true. And Brian continues this same discussion over at Bloodhound.com.

• How Do I get my VA Certificate of Eligibility?  by : Bruce Bourgault  For those veteran's as myself, who don't know where their DD214 is, Bruce gives you a few good tips.

• Mortgage Solutions for Divorced or Separated Individuals | Keeping the House by :  Leah Ross  Leah gives you some great tips for those in a divorce who want to buy a home on there own.

• The 9 Things You Must Know Before You Buy  by :  Justin Kaatz   Here are some good tips on how to approach getting a mortgage.

• Florida Mortgage | Foreign National Homebuyers - "Dollar weakens on Subprime Woes" is good news for you!  by : David A. Podgursky   For those that are Foreign Nationals buying your primary or an investment property, this is a must read.

• First-Time Homebuyer’s Guide - The Basics - Part 2  by :  Tony Gallegos Here Tony just gives you the basics of what a mortgage is. From a consumer's stance, it would be nice to know what you are getting into before you sign those contracts.

• Heads or Tails:  Is Flipping Houses Right for You? (Part 1 of 3)  by : Robert D. Ashby   Here Robert tells you that it's not as easy as it's seen on tv. There is some planning and research involved which he shares in a 3 part series.

• Rate & Point Lock Letter…………Got To Have One!!!  by : George Souto   Even if you are shopping, you better make sure that rate can be locked in. And if the lender never gave you a lock form and confirmation, then you are not locked. Read what George has to say about this.

• Bi-Weekly Payments... How does it work or does it work?  by : Matthew J Blum   Here is a post after my own heart. I tell every client on how they can beat the system by making these payments themselves. Matthew explains how to make your money work for you and not the lender.

• Credit Counseling is a Negative...  by : Erik Open Home Mortgage This is something that I am against, especially if you want to obtain a mortgage in the near future. An extremely short blog, but to the point. Before you seek credit counseling, read this.

• Arizona Construction Loans  by : Jacob Morales  Here Jacob explains to you why 1 time closings might be better than a 2 time closing for construction loans.

• Credit Inquiries and your FICO Score  by  : Tom Burris   Tom explains what a credit inquiry is and how it can affect your credit scores.

• Renting vs Buying ~ what's best for you asks a Lombard Mortgage Lender  by : Kim Murphy  Kim gives you a good reason to buy and breaks it down for you.

Bonus :  Mortgages : How would you like your mortgage served to you?  by: Jeff Belonger  Here I try and make mortgages look and feel different, not boring. 

 

Sure, some of these people can be my competition. But I believe in educating the consumer and I would rather have the help of some true professionals in this business helping me. I will be publishing 15mortgage articles twice a month. If you think you have one that might fit, please e-mail it to jbelonger@nationalfuturemortgage.com

 

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For more information on how you can obtain your dream, please click here : Mortgage Financing Options

For those seeking an FHA Expert, please click here : The FHA Expert

FHA vs Conventional loan debate -- Is there truth in some things that you read????

Ever heard of that phrase, compare apples to apples?  I am a big advocate on this. So many times in the mortgage business and life in general do I hear and see people preach about a certain thing. Making you feel like they are 110% correct. Not knowing any better, unless you were well versed about this particular topic or did your research, that this information is actually false.

So, how do you relate to information that the public can read, but might be misleading, once the true facts are revealed. What if someone called one of your family members an idiot? You wouldn't take too kindly to this. For those that know me, I don't take too kindly to it or appreciate it either. And I consider my clients like family.  And because I am so passionate in helping people obtain their dream when it comes to financing their home, I like to make sure that we are all on the same playing field. And my prime reason for this is giving the consumer full transparency into lending and what's behind the scenes.

Here is the post in question. Agents Recommend FHA and VA Mortgages Much Too Often...Don't and Here's Why Before I dissect a part of this, I want to remind you that the author of this post, Rob Blake, is a true professional by heart. His expertise and knowledge in some areas has helped homeowners of the past. But I disagree on his tone in regards to Conventional vs FHA mortgages. He backs up the new conventional programs that have come out in the last several years and talks down to FHA financing. Most noticeably, he likes the my community home buying program. It's a conventional loan that allows you to finance 100% of the purchase price. But wait, I can do this with FHA also. Please read :  Creative FHA financing -- No money out of pocket from the buyer!!!  -- Part 1

Rob Blake makes this statement : Plus it's a good primer to remind you of the real uselessness of these programs now that we have other more competitive programs in the marketplace.

Here is my problem with Rob's statements. He tells us that the use of the DPA (down payment assistance) programs  with FHA loans are negative. You need to bump the sales price in order to make this work. Yes, this does happen. It's called abuse. And then Rob makes the statement : The 100% conventional loan programs also don’t leave the new home owner in an “upside down” position like the FHA program. The FHA client is only upside down if there is fraud involved. The fraud would be raising a sales price to an amount of a home that is not the true value of that home. But the same could be said for the conventional loan. How is this? Well, if the buyer needs seller assistance for their closing costs, the seller has been known to raise the purchase price also so these costs don't come out of their pocket per se. Ouch. Could this mean that the buyer will be "upside down" on the conventional loan also? YES.

So, let's put aside all fraud and anything else that you might assume. Let's compare the apples to apples of real numbers. If the FHA loan is done correctly with the assistance of the DPA program, compared to the my community loan program, which would be better.  Yes, FHA has a one time mortgage insurance premium of 1.5% that usually gets added to the loan amount. But, the my community program's rate is usually 1/2% higher than the FHA rate. On a $250,000 purchase, comparing both loans, the FHA payment will be about $80 less than the my community loan. This is taking into affect that we are using the Down Payment Assistance program to help the buyer make this just like the 100% conventional program. Making all monies the same.

Now, Rob Blake goes on to say that FHA will be abolished because Congress wants this to happen. His main reason is because FHA loans are down considerably in the last few years. Rob is 110% correct with this. But let's take a look why.

• more lenders utilized subprime loans because they were easier for the lender to get done. (people, FHA usually requires more work on the lenders part, not the borrowers part)  
• after the subprime demise, FNMA (freddie mae) & FHLMC (freddie mac)have developed better LTV loans, up to 100% financing.  
• your average loan officer only knows conventional and subprime
• it costs lenders money yearly to do FHA loans. You have to be FHA approved which is not cheap upfront. So, this means that not all lenders are FHA approved.
• you can get an answer at a press of a button for conventional loans. It's called DU or LP. Terms for automated underwriting systems. But wait, FHA has the same type of system. The problem with this is that if the results come back as referred in regards to the conventional deal on a my community deal, it's dead. An underwriter can't override this. Now, if it comes back with a referred on a FHA mortgage, an underwriter can override this as long as it meets FHA's guidelines. But this is a lot more work for the loan officer. But you don't get charged extra for this, as long as they are giving you a good deal upfront.

So, let's take a look at Rob and his experience. Rob is very knowledgeable when it comes to these types of conventional mortgages. He knows his programs and can give good advice on this. But what does it take to be a Colorado Broker? You don't need much of a set up to broker conventional loans. Minimal licensing and minimal money. If a lender can't do FHA loans, are you getting the chance to utilize any or all loans that could be at your disposal?  NO!!

In regards to FHA, it takes more knowledge and more money to be able to offer this type of financing to your clients. What sets me apart from so many other mortgage lenders is that I am a full service lender. I can do conventional, FHA, VA, and subprime.  And just for the fact that my company underwrites all of our FHA loans. It allows me to have full control. Comparing myself to so many that might just push you into one type of loan and talk negative about FHA, means that they usually can't do FHA loans.

 

Summary : I am going to repeat myself here. If a lender can't do FHA loans, are you getting the chance to utilize any or all loans that could be at your disposal?  NO!!  If this is the case then, are you missing out on a better rate? Just Maybe....