The soft door does not cost more. Across the 60 largest FHA purchase lenders in 2025, the correlation between denial rate and median rate spread was −0.25 — slightly negative. The old assumption that easy approval means expensive money does not appear in the federal record. The exception hiding in plain sight: every lender with a negative median spread is builder-affiliated — median rates of 3.99–4.875% against a ~6.25–6.5% market. Source: 1,217,297 decisioned FHA applications, CFPB HMDA 2025; medians over originated purchase loans, spreads vs APOR.
Sorted softest first. Median rate and spread computed over originated purchase loans only. Negative spread (green) = priced below the average prime offer rate.
| Lender | Denial rate | Median rate | Median spread |
|---|---|---|---|
| Flat Branch Mortgage, Inc. | 1.7% | 6.5% | 0.689 |
| Vanderbilt Mortgage And Financ | 2.7% | 5.625% | -0.046 |
| Atlantic Bay Mortgage Group | 3.1% | 6.5% | 0.669 |
| Canopy Mortgage, LLC | 3.1% | 6.25% | 0.561 |
| Ark-La-Tex Financial Services | 3.6% | 6.25% | 0.412 |
| Nfm, Inc | 3.8% | 6.25% | 0.617 |
| Das Acquisition Company, LLC | 3.8% | 6.625% | 0.879 |
| Velocio Mortgage, L.L.C. BUILDER | 4.0% | 3.99% | -1.876 |
| Crosscountry Mortgage, LLC | 4.6% | 6.575% | 0.742 |
| Towne Mortgage Company | 4.6% | 6.25% | 0.471 |
| M/I Financial. LLC BUILDER | 5.2% | 4.875% | -1.017 |
| Guild Mortgage Company | 5.3% | 6.375% | 0.614 |
| Cmg Mortgage Inc | 5.3% | 6.125% | 0.442 |
| American Neighborhood Mortgage | 5.3% | 6.625% | 0.774 |
| Movement Mortgage, LLC | 5.7% | 6.5% | 0.719 |
| Paramount Residential Mortgage | 5.7% | 6.375% | 0.578 |
| Ruoff Mortgage Company | 6.0% | 6.75% | 0.838 |
| Fairway Independent Mort Corp | 6.5% | 6.5% | 0.744 |
| Primelending | 6.7% | 6.49% | 0.617 |
| Gold Star Mortgage Financial G | 6.8% | 6.625% | 0.772 |
| Union Home Mortgage Corp. | 7.4% | 6.375% | 0.67 |
| New American Funding, LLC. | 7.8% | 6.625% | 0.91 |
| Primary Residential Mortgage, | 8.1% | 6.625% | 0.776 |
| Stockton Mortgage Corporation | 8.4% | 6.625% | 0.853 |
| T2 Financial LLC | 8.5% | 6.5% | 0.695 |
| First Community Mortgage, Inc. | 8.7% | 6.375% | 0.607 |
| Acrisure Mortgage, LLC | 8.8% | 5.49% | -0.166 |
| Everett Financial, Inc. | 8.9% | 6.625% | 0.929 |
| Click N' Close, Inc. | 9.2% | 6.75% | 1.79 |
| Securitynational Mortgage Comp | 9.3% | 6.5% | 0.782 |
| Guaranteed Rate, Inc. | 9.4% | 6.375% | 0.615 |
| Prosperity Home Mortgage, LLC | 9.4% | 6.25% | 0.487 |
| The Loan Store, Inc | 9.6% | 6.25% | 0.397 |
| American Financial Resources L | 9.8% | 6.5% | 0.64 |
| Cardinal Financial Company, Li | 10.0% | 6.375% | 0.75 |
| American Pacific Mortgage Corp | 10.1% | 6.5% | 0.782 |
| Lower, LLC | 10.8% | 6.375% | 0.593 |
| Ocmbc, Inc. | 10.8% | 6.25% | 0.561 |
| Kbhs Home Loans, LLC BUILDER | 12.2% | 5.75% | -0.018 |
| Zillow Home Loans, LLC | 12.3% | 6.5% | 0.654 |
| United Wholesale Mortgage | 12.7% | 6.125% | 0.381 |
| Plains Commerce Bank | 13.4% | 6.25% | 0.529 |
| Newrez LLC | 13.9% | 6.25% | 0.356 |
| Sun West Mortgage Company, Inc | 14.2% | 6.367% | 0.527 |
| American Financial Network, In | 14.6% | 6.75% | 0.982 |
| Inspire Home Loans Inc. BUILDER | 15.7% | 4.875% | -0.975 |
| Planet Home Lending, LLC | 15.9% | 6.25% | 0.569 |
| Equity Prime Mortgage LLC | 16.0% | 6.625% | 0.761 |
| Pennymac Loan Services LLC | 18.6% | 6.125% | 0.354 |
| Freedom Mortgage Corporation | 19.4% | 6.25% | 0.194 |
| Rocket Mortgage | 19.5% | 6.25% | 0.456 |
| Dhi Mortgage Company, Ltd. BUILDER | 20.5% | 4.5% | -1.397 |
| Loandepot.Com LLC | 21.3% | 5.875% | 0.059 |
| Lennar Mortgage, LLC BUILDER | 22.9% | 4.5% | -1.331 |
| Mortgage Research Center | 23.7% | 6.625% | 0.73 |
| Kind Lending, LLC | 24.1% | 6.25% | 0.399 |
| Pulte Mortgage LLC BUILDER | 26.8% | 4.875% | -1.122 |
| Plaza Home Mortgage, Inc | 30.7% | 6.49% | 0.631 |
| Nvr Mortgage Finance, Inc. BUILDER | 34.0% | 5.99% | 0.194 |
| Flagstar Bank Na | 37.4% | 6.25% | 0.311 |
Six lenders priced below APOR at the median in 2025 — and all six are builder-affiliated: Velocio (3.99%), DHI Mortgage (4.5%), Lennar (4.5%), Pulte (4.875%), M/I Financial (4.875%), Inspire (4.875%). Builders are subsidizing the rate to sell the house, and the federal record shows the size of the subsidy: 1.5 to 2.5 points below market. The catch sits in their denial DNA: several of the same shops (Pulte 26.8%, NVR 34.0%) deny well above average — almost entirely on DTI. Builder financing is the cheapest door in America if you clear the math wall.
Nationally, manufactured-home FHA applications were denied at 23.3% versus 21.8% for site-built — a mild gap. But the gap lives at specific doors: Rocket denied 38.7% of manufactured applications (vs 29.8% overall) and AmeriSave 79.1%, while CrossCountry held at 6.9%. The penalty is real at generalist doors and absent at others.
| Lender (manufactured only) | Apps | Denial rate |
|---|---|---|
| United Wholesale Mortgage | 5,853 | 21.5% |
| Rocket Mortgage | 4,597 | 38.7% |
| Crosscountry Mortgage, LLC | 2,041 | 6.9% |
| Amerisave Mortgage Company | 1,996 | 79.1% |
| Guild Mortgage Company | 1,857 | 9.3% |
| Cardinal Financial Company, Li | 1,758 | 11.0% |
| New American Funding, LLC. | 1,696 | 28.6% |
| American Financial Resources L | 1,608 | 9.0% |
| Newrez LLC | 1,372 | 37.0% |
| Freedom Mortgage Corporation | 1,168 | 35.6% |
| Fairway Independent Mort Corp | 1,137 | 10.3% |
| Loandepot.Com LLC | 1,111 | 48.7% |
Medians describe originated loans, not offers: spreads reflect borrower mix, points, buydowns, and lock timing as well as pricing appetite; this is not an APR or fee comparison and not advice. Rates and denial rates travel with channel design — see the reason fingerprint. Context: the top-100 table · the state door map.
“Across the 60 largest FHA lenders, the correlation between denial rate and median rate spread was −0.25 in 2025 — the soft door does not cost more, according to FinanceRateCalc.”