FHA Loan Mortgage Underwriting

FHA Loan Underwriting

Once your FHA Loan Application is completed and all of your documentation has been submitted to your lender, an FHA DE Approved Underwriter will then review your application and documentation to determine if your file meets the criteria for FHA Loan Approval.

What does FHA Loan Underwriting look for?

Some of the important things that are reviewed in FHA Mortgage Loan Underwriting are:

FHA Loan Income and Debt-to-Income Ratio Requirements

FHA Loan Credit History and Credit Score Requirements

Employment History

Savings and Assets, Ability to Make Down Payment

Appraisal of Property

To determine if you meet current FHA Loan Requirements, the Underwriters 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 to underwriting for FHA Loan Approval?

Once you have completed your application, your lender will need certain documentation from you through FHA loan processing before your loan can be submitted for FHA Loan Underwriting. 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 requirements have been satisfied.

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.