yes, a borrower should always use an agency-approved lender, assuming they and the deal qualify, and the projected hold period is longer than the repayment period. If the borrower and/or the deal do not meet their criteria, or the plan is to exit the loan after a few years or less, the borrower may still be able to use an agency-approved lender since most offer more than just agency loans. However, they will not qualify for the best rates and terms.