Who Pays for the FHA Mortgage Insurance?
FHA mortgage insurance is usually a cost to be paid by the Borrower. • There is an up-front fee that can be financed – added right on to the loan request, and it does not have to be paid in cash. • There is also an annual fee which is collected along with each monthly payment. Do FHA Loans Take a Long Time? Not any more. A few years back, much of the paperwork and the approval process was handled at regional FHA offices. But FHA has delegated much of the responsibility for loan approval to designated lenders. A lender such as AmeriFirst Financial who participates in FHA’s “Direct Endorsement” program, can close an FHA loan in the same amount of time as a conventional loan. What are Points? A “point” on FHA loans, more properly call a “discount point,” is a fee of 1% of the original loan balance, paid at closing, to lower the borrower’s interest rate. FHA “deregulated” interest rates and points and AmeriFirst Financial always offers an interest rate where no additional discount points a
