FHA Loan Interest Rate Seems High

[Ian Whiteman]

Im in the process of securing a 30 fixed rate FHA loan on a duplex. Credit score on my personal Experian site shows as 818. The lender says it is 771. Not sure why there is a discrepancy. Today I received the loan docs and my issue is that the rate was locked for me at 4.875% which seems high. We are putting about 6% down on a 470k loan since it was over the maximum allowable for FHA on a duplex.

I questioned the lender, who is a close friend of my business partners, and he said he cut his commission to get us down to 4.875% and it should have been 5%. Am I mistaken in feeling it is high based on todays rates?