At present, for all borrowers, you will pay 1.5% of the loan amount as a fee to FHA to pay for the insurance to protect your lender in the event of default. Additionally, you will pay a monthy MIP calculated as 0.5% of the loan amount spread over 12 months.
Beginning with FHA Case Numbers ordered on or after July 14, FHA will take into consideration the borrower's credit score and down payment amount to calculate MIP. Depending upon the credit score and amount of down payment, the MIP closing fee will range from 1.25% or the loan amount to 2.25%. Monthly MIP will go as high as 0.55% of the loan amount per year.
FHA Case Numbers are ordered as part of the processing of your application. It is VERY IMPORTANT that you determine whether it is less costly to apply immediately to secure an FHA Case Number or to wait until July 14th. If you wish to get your Case Number before the chnage, you must be sure the lender will order your Case Number BEFORE July 14th.
Below is a link to HUD's Mortgagee Letter 2008-16 which details the changes. Mortgagee Letters are the way HUD informs banks and lenders or changes to FHA lending guidelines.
You really have to be cautious with whom you end up choosing because if you exceed your financing period and your lender changes the terms of your loan, you have no choice but to follow through. If you walk away, you will most likely lose your earnest money and the seller could go after you for breach. Bottom line is make sure you trust both your realtor and lender and follow your instincts.
Get an experienced set of eyes on both of the good faith estimates from the competing financial institutions and make sure that if you sign and agree to the good faith estimate of your choice that there is no bait and switch.
Brent has never heard of an "endorsed lender" and neither have I.
FHA might "endorse" a loan - that's called fully-funded approval.
I totally uderstand what your going through, altough I'm not sure if your comparing a mortgage broker with a bank or two different banks. Mortgage brokers do not lend their own money. Usually FHA is relatively the same across the board...Closing costs and rates fluctuate depending on if the bank is servicing the loan or selling it to another nbank at the end of the day. However, they should not be that much different. Now hopefully, you have good faith estimates from both lenders now. Compare those. Watch the closing costs mine are typically 1650-1700 on any FHA loan, if its over 3000, your most likely dealing with a broker. If you would like I can give you a good faith etimate ffrom my bank so you have 3 to look at. FHA loans are everywhere and are becoming more of the norm in this market. It has pretty much been my main focus from the start of the year. If you would like an estimate (GFE), feel free to contact me. If you have any questions that maybe I could answer feel free to contact me, I would answer them with no intentions of trying to get your financing on your home.