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The mortgage broker is really pushing for an FHA loan & I like the Guaranteed RD loan. It makes me think she makes money on the FHA but not the Rural. Any help would be great!

2 Thoughts on Does a mortgage broker make money off of a guaranteed rural development loan?
  1. Reply
    Landlord
    June 12, 2013 at 6:51 am

    They make money from any loan, but you are right, some loans pay more then others.

  2. Reply
    LetRRip
    June 12, 2013 at 7:00 am

    Mortgage brokers earn a commission on all loans. In mortgage lending today mortgage brokers are to earn the same percentage no matter what loan they close. This is due to the Dodd/Frank Act that went into effect in the beginning of 2011. This is to prvent brokers from steering you toward a higher cost loan. As with any law there are ways to get around the laws in place.

    However you’re mortgage broker may be steering you toward FHA knowing that you have a better chance of qualifying for the loan. Even though RD loans require $ 0 down, there are other restrictions such as income (can’t earn to much). If you haven’t yet, ask your broker why they think FHA is the best route.

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