FHA Loan Approval

FHA Loan Approval Process

An FHA loan provides low-cost insured home mortgage options that can suit a variety of circumstances. Whether you're buying a home or want or refinance your mortgage, FHA Loans might be right for you. If you're unsure about your credit rating, or have concerns about a down payment, ENG Lending's FHA Loans can give you piece of mind with super low closing costs and flexible payment options. Let ENG show you why we rank among the top FHA Loan lenders.

What are the steps to get an FHA Loan Approval ?

Some of the important steps that need to be completed for an FHA Loan Approval are:

Contact an FHA Loan Lender

Compare interest rates and closing costs

Lean about current FHA Loan Requirements and FHA Loan Limits for your area

Complete an FHA Loan Application

Provide your FHA Loan Lender with all requested documentation

Close the FHA Loan Transaction

To determine if you meet current FHA Loan Requirements, we will look at:

Your income and your monthly expenses. Standard FHA Loan Requirement debt-to-income ratios are 31/43. These ratios may be exceeded with compensation factors.

Your credit history (this is important, but FHA's credit standards are flexible).A 620 FICO credit score is required to obtain an FHA approval through ENG Lending.

What documentation will I need to submit my loan for FHA Loan Approval?

Once you have completed your FHA Loan Application, your lender will need certain documentation from you in order to verify that you meet FHA Loan Requirements. Some of the documentation that will be requested includes:

W-2s for the past two years.

2 most recent year-to-date paycheck stubs (within 30 days).

Residence Address – Past 2 years and landlord information if applicable.

Name and address of each employer for the past 2 years.

2 years’ tax returns, including all schedules if self employed or commission (1099).

Last 2 months bank statements for all checking, savings, investment and retirement accounts (all pages included).

Divorce Decree and 12 months’ proof of child support, when applicable.

Address of other real estate owned.

Loan information on all real estate owned.

Copy of your Drivers License and Social Security Card.

Copy of the sales contract for the subject property with all addendums if applicable.

Once your loan application and all of the requested documentation has been submitted, it is be verified by an FHA DE Underwriter who can then issue an FHA Loan Approval once all FHA Loan Requirements have been met.

Why choose an FHA Loan?

FHA House Loans require a low 3.5% down payment.
Non-occupant, co-borrower are permitted by FHA Loan Requirements.
FHA Loan Underwriting guidelines use expanded qualifying ratios.
There are no pre-payment penalty requirement for an FHA Housing Loan.
FHA Insured Loans carry low fixed interest rates.
FHA Loan Guidelines have lower MI premiums.
An FHA Loan Program is eligible for non-credit qualifying, streamline refinance.
A HUD FHA Loan is available all areas of the country, provided a market exists for the property and the home meets HUD's minimum property standards and the price is below the Maximum FHA Loan amount for that area.
You can get an FHA Loan to purchase or refinance a new or existing one to four family home in urban and rural areas.
FHA Fixed-Rate Loans are offered at terms of 15 or 30 years.

FHA Loan FAQ'S

What is an FHA Loan?
An FHA loan provides low-cost insured home mortgage loans that suit a variety of purchasing and refinancing options.

What are FHA Loan Limits?
Today's maximum FHA Loan Limits are determined by the area where the subject property is located.

How can I qualify for an FHA Loan?
You must obtain correct FHA Loans Information to determine if you could qualify for today's FHA Loan Insurance guidelines. Certain FHA Loan Credit Score and FHA Loan Income guidelines must be met.

What are current FHA Loan Fees?
The FHA has a list of allowed fees that can be charged to the borrower on FHA Loans. These fees are referred to as allowable closing costs, and can vary from lender to lender. The FHA Loan MIP (Mortgage Insurance Premium) amounts to 1.75% of the loan amount and in usually financed in the mortgage.

Do FHA Loans have Mortgage Insurance?
FHA Loans have Monthly Mortgage Insurance on loans with a term of greater than 15 years and a loan-to-value ratio of 90% or greater (meaning you are borrowing more than 90% of the value of the home). FHA Mortgage Insurance (MI) is not considered FHA Loan PMI, because it is not provided by a private mortgage insurance company like on Conventional Loans. When comparing the monthly mortgage insurance rates on FHA Loans vs Conventional Loans PMI, the FHA MI Rates are usually better.