Lender is charging a higher FHA rate because it's a multi-family?

[Brenden M.]

Hi all. I am in the process of purchasing a triplex with an FHA loan. I started shopping around with a few different lenders on Friday, but only one has gotten back to me with concrete numbers after I submitted a loan app. She quoted the interest at 3.625% for 30-yr fixed. I was expecting the interest rate to be lower than a conventional rate - not higher. Am I mistaken here? When I asked her about it, she mentioned that the rate is higher specifically because it "will be an income-producing property."

As I mentioned, I am shopping around and will be following up with other lenders tomorrow to make sure I am getting the best option regardless. But should I be expecting the rate to be higher than conventional??

[Russell Brazil]

Multifamily has a pricing adjustment upwards verse single family.