A Federal Housing Administration (FHA) loan is only offered by FHA-approved lenders and serves as a federal assistance to low-income US citizens for them to borrow money for the purchase of a house through a home mortgage loan.
Mortgage loans are retail consumer products just like the appliances you purchase for your home. What makes your mortgage “retail” is the markup the loan originator adds to your interest rate to get a commission from the wholesale lender. This commission is paid in addition to the origination fees you’re already paying for that person’s services, lining their pockets at your expense.
Very few homeowners have even heard of Yield Spread Premium even while the topic is hotly debated in Congress. Mortgage brokers are required to disclose this markup of your interest rate; however, they have clever ways of disguising it on the Good Faith Estimate and HUD-1 Statements. The good news for you is that you can avoid paying Yield Spread Premium and get a wholesale interest rate when refinancing your mortgage.
If the seller has fallen behind on their payments and you agree to make the payments current. The interest rate on the existing loan equals or exceeds the current market rate. Mortgage lenders dislike “portfolio runoff” of their above market interest rate loans. The buyer/seller has a working relationship with the existing lender. The buyer/seller agrees to additional business with the existing lender.
Moreover, a home mortgage loan can be achieved if you are working for the same employer. Keep in mind that the constant change of employment and part-time jobs are not pleasing to the eyes of the lenders. These may doubt your ability to repay the loan. Hence, it is important that you get a full-time job and stay with the same employer for a longer period of time.
Learn more about Obama Mortgage Relief Plan Qualifications.