FHA Loan Articles
News, updates, and explanations to keep you informed.
How Long Do FHA Loan Applications Take to Process?
When it comes to FHA home loan applications, many borrowers wonder about how long their paperwork will take to make it through the review process. The application phase of an FHA loan can be stressful for some borrowers, especially those who have never applied before and don't know what to expect.
Did you know FHA loans have a rule that the lender must act on your application--and inform you know of that action--no later than 30 days after the application has been completed and turned in? There's just one catch--the application must be totally complete.
Some borrowers choose to submit partial information on credit data, withhold certain details of their employment history or other information , mistakenly believing omitting potentially unfavorable data might protect them from having an application rejected.
But leaving out any required information does not help the borrower at all-the lender cannot process a credit application that is not completely filled out. The FHA "30 day rule" does not apply in cases where incomplete forms have been given back to the lender. Borrowers should know a complete application is the only way the FHA loan process can move forward.
Leaving gaps in the application data could cause serious delays in the processing of an FHA loan application. FHA rules state clearly, "Your application will not be considered complete, and the 30 day period will not begin, until you provide to your lender or mortgage broker all of the material and information requested."
Borrowers concerned about past credit issues or other potentially negative information that could be required on an application form should contact the FHA for advice and housing counseling before filling out an FHA loan application. Doing so early in the process can help FHA loan applicants understand what must be done in order to improve their chances for an FHA insured mortgage. Doing so can also help borrowers understand how FHA loan requirements can be more lenient in some cases depending on the circumstances.
FHA NEWS and RELATED ARTICLES
One type of question that sometimes arises about FHA loans-- Is there a no-credit-check version of an FHA mortgage loan? What is the criteria required for FHA loans that do not require a credit check and/or appraisal?
One not-so-common question about FHA loans still comes up often enough to discuss in detail. Some FHA loan applicants want to know if they can purchase a residence from another family member using an FHA insured mortgage.
Except for obligations specifically excluded by state law, the debts of the non-purchasing spouse must be included in the borrower’s qualifying ratios if certain conditions are met.
Some FHA borrowers have questions about applying for an FHA loan after experiencing a short sale on a previous home. The FHA loan rules found in HUD 4155.1 have the answers for borrowers applying for an FHA mortgage after a short sale.
The FHA and HUD issued new rules for mortgage insurance designed to add fiscal security to the loan program, and when those rule changed the new guidelines were published in Mortgagee Letter 2013-04.