Hi Tyler-

I am not sure when your bank quoted your rate to you but I just priced out your FHA file and I can do it for 6.5% with a 30-day lock.

If I were to sell you on an FHA loan at 7.25% then I would make 2% of the loan amount as a rebate to me - probably enough to pay all of your closing costs!
I would be glad to give you a second option for financing if you feel you are being priced too high. Yes, rates are trending upward but they have not hit the low 7's yet for that credit score.
Please call me if you have questions.
Luke Allison
Flagstar Bank
828-777-8828
Luke.Allison@flagstar.com

Thats what I thought but we were under the impression that FHA was the loan not just the backing. Thank you for clairifying that for us. The bank told us the only money they were making on the loan was the 1500 for getting the loan started. Thanks for the advice

also they make money on all loans that is why they are in business.

are you dealing directly with the bank or working through a mortgage broker? The bank is working to make money for themselves and A Mortgage broker will work to get you the best rate. FHA is a loan guarantee not actually the financing. and which agency are the scores through, If they picked scores from multiple agencys they would use the lower of the two or the middle of three credit scoresfor each person. Bottom Line Shop Around