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honest lending contract
To save homebuyers millions of dollars a year from high interest rates and fees on home loans obtained by mortgage brokers, HUD has designed an Honest Lending Contract between homebuyers and mortgage brokers.
Some brokers have steered borrowers to banks with high interest rates and fees. This has resulted in homebuyers paying more than they should. The Honest Lending Contract is signed BEFORE all the paperwork begins so that everyone understands the costs.
For more information, visit a local HUD office or call the Housing Counseling Clearinghouse toll-free 1-888-HOME-4US (1-888-466-3487).