News by Subject
Complete list of specialty news sections.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Mortgage Industry News
Subscription-based news for people who work in real estate finance.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories for your web site or for your RSS reader.

News Archives
Archive of news entries.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Graphs
Directory of lenders, branch operators and mortgage service providers.
home advertise email RSS about us
HOT Topics Rates Glossary LO License Search
Consumer Mortgage News
Free mortgage news for current and prospective borrowers from a leading online mortgage industry news publication.

FHA Rates Better Than Conventional Rates

FHA requirements less rigid than conventional

April 17, 2017

By SAM GARCIA Mortgage Daily

portrait of Sam Garcia

Conventional wisdom has home shoppers with a low-down-payment FHA loan having a higher rate. But FHA rates have consistently been lower than conventional rates.

Conventional loans account for a majority of single-family mortgages that consumers normally use to finance a home purchase or refinance an existing mortgage.

After the closing, conventional loans are bought or guaranteed by Fannie Mae or Freddie Mac, the two big secondary market lenders that are currently controlled by the government.

In February, interest rates on 30-year conventional loans averaged 4.48 percent -- the highest they've
been since October 2014 -- according to data from Ellie Mae Inc., which provides technology to process a big share of the nation's mortgage business.

But 30-year rates on home loans that are insured by FHA -- formally known as the Federal Housing Administration -- averaged 4.28 percent in February 2017 -- 0.20 percentage points better than conforming rates.

It was similar a year earlier, when conventional rates were 4.29 percent and FHA rates were just 4.17 percent.

In fact, interest rates on FHA mortgages have been lower each month since at least January 2013 -- the oldest data available from Ellie.

Credit guidelines for FHA borrowers are more relaxed than for conventional programs.

In addition, home buyers who go with an FHA mortgage can pay a little as 3 percent down.

Borrowers who utilize FHA programs will need to pay mortgage insurance premium to FHA, which takes a hit when the borrowers don't pay.

But even on conventional loans, consumers must buy a policy from a private mortgage insurance company when they make less than a 20 percent downpayment, though conventional borrowers can avoid PMI with 10 percent down and a 10 percent second mortgage.

next story

back to home page

Refinance News
News about refinance programs, pricing and production.
H A R P 2.0 News
News stories about the H o m e Affordable Refinance Program including expanded program guidelines.

Copyright © 2016 Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

pricing engine directory

wholesale lender directory

More Mortgage News Resources ( full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

free mortgage news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

refinance news

reverse mortgage news

sales blog

secondary marketing

servicing news

subprime news

wholesale lenders

wireless mortgage news