Mortgage Brokers, the FHA, and approved fees
By admin | January 2, 2008
If you are planning to get a mortgage loan through the FHA you should be aware of the fees that are allowed or not allowed by the FHA. The FHA has approved mortgage lenders and brokers that you are allowed to use if you want to get a loan through one of their programs.
Some of the rules about fees that are associated with FHA loans include:
• An FHA approved mortgage broker can be paid from the loan for the loan origination fee for this service. This fee is considered standard, and is usually included in the closing costs of the loan.
• If the broker is not FHA approved then their loan origination fee can not be paid from the proceeds of the loan.
• Not only would their services not be paid for from the loan, but you would have to pay for their services, which the FHA would then require you to repeat with an FHA approved lender or broker. This means that you will pay this fee twice if you mistakenly do not use an FHA approved lender.
• If you did pay a fee to an unapproved lender or broker, you must disclose this information to the FHA. The FHA needs to determine your eligibility for the loan based on this information.
• You must not pay higher than the market rate fee or else the extra money would be considered a referral fee which is not allowed with FHA loans and could cause you to be rejected from the loan program. Referral fees are a type of kick back and are not permitted by any party in an FHA loan.
It is important to understand the fee rules of the FHA, because if you don’t know the rules then you may go to an unapproved lender who you will have to pay a fee for helping you, and this fee may cause you to be turned down for your FHA loan. Make sure that you go to an FHA approved lender right from the start to make sure that you do not get turned down for your mortgage loan over a simple mistake. You can find a list of FHA approved lenders by going and searching for a fha lender that is the closest to you.
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