FHA loan application switch to another lender.

[Rizwan Qadri]

Hi,

I am under contract for a 2 family house and in process of getting FHA loan from via broker lender. They just completed underwriting process have issued a commitment letter @4.65%. In the meantime I found another lender (a credit union) who is willing to finance this for 4.0% which certainly makes difference in monthly payments of about $200. Since this is FHA loan, I learned that FHA loan number assigned for this property need to be moved to new lender and unlike conventional loan application, I cannot have 2 lenders working on same property at a time? . I would like to get an idea if its worth moving at this point.I have about 6 weeks to close, so time should not be a factor as I see of now. Also can the FHA appraisal carried over to new lender? I would like to stick to current lender since they have already worked on the loan but I highly doubt they can match what credit union is offering.

Thanks

Riz

[Upen Patel]

@Rizwan Qadri You can certainly move the FHA loan to a new lender. The appraisal is attached to the property, so you should be fine. Let the broker know and also send a fax. If they drag their feet then provide a letter to the new lender that you want to switch to them, which they can file with FHA to move the loan.