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Guide To Single Family Home Mortgage Insurance

Shopping for an FHA-Insured Loan

After you have found the home you want to buy, you should call various lenders listed under "Mortgages" in the Yellow Pages or visit http://www.hud.gov/ll/code/llplcrit.html to find the lender offering the best terms.

 

The costs associated with a loan can vary significantly from one lender to another. It pays to comparison shop for a mortgage. The most important factors to consider in comparing loans are:

  • Interest Rate
  • Discount points
  • Closing costs and other fees, such as charges to originate the loan, commitment fees to "lock in" the mortgage terms you and the lender have agreed to for a certain period, and? mortgage insurance premiums (MIP).
  • Annual Percentage Rate

All of these factors are negotiated between you and your lender. HUD does not establish minimum or maximum amounts for the interest rate, discount points, or most processing fees you pay your lender.

_________________________

Table of Contents

Becoming a Homeowner

How FHA Mortgage Insurance Works

Who Can Get an FHA-Insured Mortgage?

Types of Mortgages FHA Insures

Shopping for an FHA-Insured Loan

Interest Rate

Initial Investment (Down payment)

Discount Points

Closing Costs and Prepaid Items

Origination Fees

Commitment Fees

Mortgage Insurance Premium

Annual Percentage Rate

Applying for the Loan

Payments on an FHA-Insured Mortgage

Limits on FHA-Insured Mortgages

The Most Frequently Used FHA Mortgage Insurance Programs

Other FHA Mortgage Insurance Programs

For more information on these and other FHA programs, please contact your local FHA approved lender.

Source: General Services Administration

 

 

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