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Business Partner Update
Joey Rivero
Clear Choice Lending Group
Thursday, November 5, 2026
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FHA loans: what agents need to know right now
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Rate Snapshot · November 4, 2026 |
▼ -0.10% |
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Conventional 30-Year
7.12%
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These are national mortgage index rates as of November 4, 2026. The 30-year fixed is at 7.12% — down 0.10% from last week, FHA at 6.9%, and VA at 6.76%. For exact rates tailored to your buyers, reach out to your loan officer directly.
Source: Optimal Blue daily mortgage indices via FRED
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From Your Lending Partner
FHA Isn't Just for First-Time Buyers — Here's When It Wins
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FHA gets a reputation as the "starter loan," but it's the right tool in more situations than people realize. The 3.5% down requirement is hard to beat for buyers with limited cash, and the credit flexibility — approvals down to 580 — means buyers with imperfect history still have a path to homeownership. What most agents don't know is that FHA can actually be the better option even for buyers who qualify conventional. When a buyer's credit score is in the 620–659 range, FHA pricing often beats conventional significantly. The monthly MIP can be offset by the lower rate and better loan-level pricing. I model both options for every buyer and present the real numbers. FHA also allows seller concessions up to 6% — which creates more room for rate buydowns and closing cost coverage in negotiations. If you've been steering buyers away from FHA without modeling it, let's revisit that conversation. The right loan isn't always the most obvious one.
I'll run FHA vs. conventional side-by-side for any buyer you're working with.
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Did You Know?
Conventional 1% Down
Your buyer puts in 1% — the lender covers the other 2%.
Most agents don't know this program exists. Qualified buyers can purchase with just 1% down on a conventional loan — the lender contributes an additional 2% grant, getting them to 3% equity at close with no second lien, no repayment.
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✓Available to buyers at or below 80% of area median income
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✓No PMI on the lender contribution portion
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✓Standard conventional guidelines — not FHA
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✓Combine with seller concessions for near-zero out-of-pocket closing
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Share With Your Buyers
The Home Inspection
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1.
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Never waive your right to an inspection — even on a new build.
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2.
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Attend the inspection in person and ask questions — this is when you really learn about the home.
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3.
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Not every inspection item needs to be a deal-breaker. Focus on structural, mechanical, and safety issues.
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4.
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A specialist inspection (roof, HVAC, foundation) may be warranted if your inspector flags concerns.
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5.
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Use inspection findings to negotiate a credit at closing rather than a repair — you control the work quality.
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Tip of the Week
Closing costs typically run 2-5% of the loan amount. Ask your lender for a Loan Estimate so there are no surprises.
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