FHA Loan Articles
News, updates, and explanations to keep you informed.
What Documents Do I Need for My FHA Loan Application?
When you apply for an FHA mortgage, you'll need to provide a set of required documents and paperwork that contains the information a lender needs to process your FHA home loan properly. FHA loan applications include requests for detailed information on your credit and job history, but there is often supporting documentation required to help the lender perform the "mortgage credit analysis".
Not all of these documents are supplied directly by you, the loan applicant, but some of the lender-generated paperwork requires the borrower's permission in writing to accomplish. This includes the borrower's written consent given to the lender to request credit reports from the three major credit reporting agencies Equifax, TransUnion, and Experian.
Required documentation also includes what the FHA terms "evidence of a Social Security number" -- your Social Security card or other documents the lender may accept as proof of your number. Ask your loan officer what documents may be acceptable in place of a missing Social Security card if necessary, or what could act as a stand-in until your replacement Social Security card arrives.
When it's time for the lender to perform a verification of your employment data, he or she will be exploring the information you provided in your application for the FHA home loan or refinancing loan including calls to your employer and other steps. These calls and verifications are documented as required by FHA loan rules and bank policies.
For borrowers with non-traditional jobs or seasonal work, there may be additional employment documentation needed--your profit and loss statements and other business paperwork. Your lender will tell you what additional information might be needed if that's the case.
You may be required to submit copies of your federal income tax returns, especially when it comes to processing FHA mortgage loan applications from self-employed and small business owners.
Tax returns are an important part of income verification, be prepared to furnish least two years of tax data available if and when needed. FHA loan rules also govern the age of this type of paperwork; FHA loan rules require lenders to "obtain the most recent documents required to perform the mortgage credit analysis."
The phrase, "most recent" refers to the most up-to-date documentation available at the time the loan application is filed. It's best to be prepared for these requirements--have official, certified, notarized, or "validated by the lender" copies available.
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.