Are there currently any lenders that would approve a home loan with a middle fico score of 607?

If you have a lender willing to do your FHA loan with a 607 credit score, I would say there's no need to shop.. if they have already approved you, just stick with them.. even if someone was to offer you a slightly better rate, you would be starting from ground zero, and some of the things you might have already paid for, would have to be re ordered and paid for by you again with the new lender (credit report, application fee, appraisal, etc..) The time to shop would have been before you committed to a lender, not when your 3/4 of the way through.. The best advice I can give you is to contact a LOCAL mortgage broker and apply with them. Do not use the local "Big" bank, or one of those 50 states internet lenders or nationwide lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Don't shop yourself out of a good loan. If it already seems expensive, it will be more expensive starting over. 4.875% is a decent rate for a 607 FICO. Get into the house now and refinance into a conventional loan later.

Proceed with speed.

Your rates seems appropriate especially with a 607 FICO. I don't know what your closing costs are but you do have protection on that front. The way lenders calculate the "Cost of the Loan" (Combining interest rate and closing costs) is with the Annual Percentage Rate (APR) calculation. This number has to fall within a certain range which prevents lenders from "Over Charging" and is regulated.Sounds like you did your up front homework well and negotiated a good deal.

The problem with this question is we don't have enough information. Interest rate and closing costs go hand in hand. So a recent rate on an FHA loan with a 607 score at 4.875% may be awesome, or it may be bad. Your score is high risk, and rates go up the lower your score. Closing costs may seem high to you, but in reality may be just fine. The ONLY way to tell would be to let some other lender review a full application. Then don't forget rates change. Sometimes daily. With a closing scheduled for 1/21/2014 - just stick where you are at... 4.875% doesn't sound bad to me.