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
Some borrowers come to the FHA loan process with a long credit history, while other borrowers are just getting started. Is it possible for a borrower be turned down for an FHA loan because of a lack of credit history?
The FHA Reverse Mortgage, also known as Home Equity Conversion Mortgages or HECM loans, is designed for those aged 62 and older who own their home outright or have few payments left on the mortgage.
When the Department of Housing and Urban Development announced the FHA’s Back to Work program, it was very good news for any potential FHA loan applicant who may have experienced previous financial hardship as a result of the recession.
When you apply for a new purchase FHA home loan, FHA loan rules say you must list your income and employment details. This lets your loan officer accurately determine your debt-to-income ratio, using calculations based on your verifiable income.
Do you need to buy a home using an FHA loan, but one that is out of town or out of state? The Department of Housing and Urban Development has created a new tool to help FHA loan applicants and anyone else looking for a home loan.