No single lender wins on every FHA loan. HUD sets the program rules, so the real differences are rate, fees, credit overlays and how the loan is priced, and you can judge those yourself with five criteria. Duane Buziak (NMLS #1110647) recommends starting with NoTouch Credit Pull, a soft-pull pre-approval that reviews your profile without a hard inquiry or any score impact. That makes a soft credit pull mortgage check the safest way to compare FHA offers before any credit hit.
One name clarification first: LowerMortgageRates.com is Duane Buziak, Mortgage Maestro at Coast2Coast Mortgage LLC (NMLS #376205), and is not affiliated with Lower.com, a separate company. Below you will find a worked payment example showing what a rate gap costs, a structural comparison table, and a checklist for reading Loan Estimates.
Why Does No Single Lender Offer the Best FHA Loan for Everyone?
Because the FHA program is identical everywhere, the lenders differ only on what they layer on top: price, fees, overlays and service. An FHA loan is a mortgage insured by the Federal Housing Administration, which is part of HUD. The insurance lets lenders accept lower credit scores and smaller down payments than many conventional programs. Under HUD’s published FHA guidelines, as of October 2026, a borrower with a 580 FICO score or higher can put down as little as 3.5%, and scores between 500 and 579 generally require 10% down. Confirm those figures on HUD.gov before you rely on them.
A lender overlay is a credit or debt rule stricter than FHA’s own, which an individual lender adds to limit its risk. One lender may refuse a 600 score that FHA technically permits, while another approves it. That is why two borrowers with the same file can hear different answers.
The common misconception is that the lowest advertised rate means the cheapest loan. A rate can look excellent because it is paired with discount points, origination charges or higher third-party fees. The rate tells you the monthly payment, but only the full cost picture tells you what the loan actually costs.
That is also why this article does not name a winner. Any ranking would be out of date by the next rate sheet and would ignore your credit score, down payment, property and timeline. Duane Buziak does not frame any lender as the best for everyone. The sections below give you the criteria to find the best fit for your own file.
How Do Broker, Retail Lender and Online Lender Compare for FHA Loans?
A broker can price one file with many wholesale lenders, while a retail or direct lender quotes from its own rate sheet. Duane Buziak shops 500+ wholesale lenders per file. That is the mechanism behind Dare to Compare, a challenge to bring any written quote and see whether it can be beaten. A direct lender has one source of pricing, so a comparison against it depends on the rest of the market.
Brokers also help when a file does not fit the standard mold. Because the broker is not tied to one lender’s overlays, a borrower who is declined by one lender can be matched to a different lender whose guidelines fit. A broker can also arrange a no-hard-inquiry mortgage pre approval through NoTouch Credit Pull before anything is submitted anywhere.
The table below compares structure only. It makes no claim about which company has the lower rate, because that changes daily and depends on the borrower.
| Structural point | Duane Buziak (broker) | Rocket Mortgage | Movement Mortgage |
|---|---|---|---|
| Business model | Broker placing loans with wholesale lenders | Direct lender | Retail lender with loan officers |
| Number of lenders priced per file | 500+ wholesale lenders | One (its own pricing) | One (its own pricing) |
| Rate sheet source | Multiple wholesale rate sheets compared per scenario | Company’s own rate sheet | Company’s own rate sheet |
| Soft-pull pre-approval | Yes, NoTouch Credit Pull | Confirm current policy with the company | Confirm current policy with the company |
| FHA and non-QM range | FHA available; non-QM and physician loans available through multiple wholesale lenders | Confirm current FHA and non-QM offerings with the company | Confirm current FHA and non-QM offerings with the company |
Programs and policies change, so check each company’s current product pages and ask for the soft-pull policy in writing before you apply anywhere.
What Does a 0.375% Rate Difference Cost on an FHA Loan?
On a $300,000 base loan, the gap between 6.50% and 6.875% is roughly $75 to $76 a month, or about $27,000 over 30 years. These rates are illustrations, not quotes. For a current market reference, check the weekly Freddie Mac Primary Mortgage Market Survey, which publishes the national average and its date.
The payment math
Suppose a buyer borrows a $300,000 base loan. The FHA upfront mortgage insurance premium (MIP) is 1.75% of the base amount, per HUD (verify the current figure), which is $5,250. It is usually financed, so the actual loan is $305,250.
- At 6.50%: principal and interest is about $1,929 a month.
- At 6.875%: principal and interest is about $2,005 a month.
- Difference: about $76 a month, or roughly $27,300 across 360 payments.
Annual MIP is added on top. For many 30-year loans with less than 5% down, HUD’s current rate is 0.55% a year (confirm on HUD.gov). On $305,250 that is about $1,679 in the first year, or roughly $140 a month, and it declines as the balance falls. With under 10% down, MIP generally stays for the life of the loan, so refinancing later is the usual way out.
Is a point worth paying?
Now suppose one quote offers 6.50% but charges one discount point, which is 1% of the base loan, or $3,000. A second quote offers 6.875% with no points. Divide the $3,000 by the $76 monthly saving and you get about 39 to 40 months, a little over three years.
If you expect to keep the loan longer than that, the point pays for itself. If you may sell or refinance sooner, the lower rate costs you more than it saves. This is why the rate alone never answers the question, and why total cost on the Loan Estimate matters.
Which Five Criteria Should You Use to Choose an FHA Lender?
Compare Loan Estimates on five points: the rate, total lender fees and points, overlays, MIP treatment and closing reliability. The comparison only works when the quotes describe the same scenario, so request them all on the same day for the same loan amount, down payment and credit profile. The CFPB’s Loan Estimate guide shows how to read Page 1 (rate, payment, cash to close) and Page 2 (itemized closing costs) side by side.
- Rate. Look at the interest rate and the monthly payment together, including the financed upfront MIP.
- Total lender fees and points. Add up origination charges and discount points in Section A on Page 2, then run the break-even math from the previous section.
- Overlays. Some lenders require a 620 or higher even though FHA allows lower, while others approve at 580 or below with compensating factors such as reserves or a low debt ratio. Ask the lender for its minimum score and maximum debt-to-income ratio in writing, and confirm Duane Buziak’s current guidelines on your specific file.
- MIP treatment. MIP is set by HUD, so the figures should match. Ask how the lender quotes it and whether the upfront premium is financed or paid in cash.
- Closing reliability. Ask about typical days to close, whether underwriting is in-house, and what happens if an appraisal comes in low.
Also ask about manual underwriting if your credit is thin, and whether the lender works with down payment assistance programs such as Dynamo or Turbo DPA, because not every lender accepts them. FHA loan limits vary by county, so check your county on HUD’s limit lookup for the current year.
Finally, check the company itself. Any broker or lender should appear on NMLS Consumer Access under its NMLS number. Duane Buziak is NMLS #1110647 and Coast2Coast Mortgage LLC is NMLS #376205. And if your credit is strong, ask for a conventional quote alongside the FHA one. FHA is not automatically the cheaper choice.
How Can You Compare FHA Lenders Without Hurting Your Credit?
Use a soft-pull pre-approval, which records no hard inquiry while you compare. NoTouch Credit Pull is exactly that: a soft credit pull mortgage review that lets Duane Buziak see your credit profile and price scenarios without the formal inquiry that a standard application triggers. A hard pull is recorded on your report and can lower scores slightly. A soft pull is not counted in scoring.
This is a mortgage pre approval without hard pull, and a true no credit hit mortgage application stage. The misconception that shopping around automatically damages your credit comes from treating every credit check as a hard one. The early comparison phase does not need to be.
The workflow with a soft pull mortgage broker
- A soft pull mortgage broker runs the NoTouch Credit Pull, so nothing is recorded as an inquiry.
- Duane Buziak reviews your scenario: credit, income, debts, down payment and property type.
- He prices FHA options across wholesale lenders and shows you the rate and fee combinations.
- A hard pull happens only when you choose to move forward with a specific loan.
A hard pull is still required before final underwriting, so the soft pull postpones the inquiry rather than eliminating it. Scoring models typically treat several mortgage inquiries made within a short shopping window as a single inquiry, but the length of that window varies by model. Check the CFPB’s guidance on shopping for a mortgage before you collect multiple hard-pull quotes.
Frequently Asked Questions About Choosing an FHA Lender
What is the minimum credit score for an FHA loan?
HUD’s guidelines allow 580 for the 3.5% down payment and 500 to 579 with 10% down. Individual lenders may require higher scores because of overlays, so confirm before you apply.
How much down payment does an FHA loan require?
The minimum is 3.5% of the purchase price with a 580 score or higher. With a score from 500 to 579, the minimum is 10%.
How long do you pay FHA mortgage insurance?
With less than 10% down, annual MIP generally lasts for the life of the loan. With 10% or more down, it generally lasts 11 years. Confirm current rules on HUD.gov.
Is FHA or conventional cheaper?
It depends on your credit score and down payment. Strong credit with 5% or more down often makes conventional cheaper, because private mortgage insurance can cost less than FHA MIP. Compare both on Loan Estimates.
Does using a broker cost more than going direct?
Not necessarily. Compare the total costs on the Loan Estimate, and ask how the broker is compensated so you can see it in writing.
Can I use gift funds for an FHA down payment?
Yes, FHA allows gift funds from approved donors such as family members, with a signed gift letter and documented transfer. Each lender may ask for specific paperwork.
Can I get an FHA loan with a recent late payment?
Possibly. FHA guidelines weigh the type and timing of late payments, and a lender with fewer overlays may be more flexible. A scenario review shows where your file stands.
Can self-employed buyers get an FHA loan?
Yes. Self-employed borrowers typically document income with tax returns, usually two years’ worth, and must show a stable income history.
How does a soft pull work for mortgage pre-approval?
A soft pull lets a broker view your credit summary without recording an inquiry. NoTouch Credit Pull uses it to price scenarios before a hard pull is needed.
Which states does Duane Buziak serve?
Duane Buziak is licensed in Virginia, Florida, Tennessee, Georgia, the District of Columbia, North Carolina, South Carolina and Maryland.
The Loan Estimate With the Lowest Total Cost Is Your FHA Answer
The right FHA lender is the one whose Loan Estimate wins on total cost for your file: payment, points, fees and the time you plan to keep the loan. Get quotes for the same scenario on the same day, run the break-even math, and ask about overlays before you commit.
If you live in Virginia, Florida, Tennessee, Georgia, the District of Columbia, North Carolina, South Carolina or Maryland, call Duane Buziak, NMLS #1110647 | Coast2Coast Mortgage LLC NMLS #376205, at 804-212-8663 to start with a NoTouch Credit Pull. Don’t let uncertainty about mortgage rates cost you thousands. Discover your personalized options with a trusted mortgage professional who can compare rates across multiple lenders without impacting your credit score. Schedule your free consultation today and take the first step toward securing the best mortgage solution for your unique financial goals.