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
When applying for an FHA home loan, some lenders may ask for tax paperwork as part of the application process. Some borrowers may wonder if this is legal, or an acceptable practice for home loans in general.
There are many questions about the official FHA loan rules for occupancy for single-family home loans. According to FHA rules, a borrower must occupy the home purchased with a single-family FHA loan as a personal residence as a condition of loan approval.
After the housing market crisis of the previous decade, many mortgage borrowers found themselves having trouble making their monthly payments. In some cases, borrowers just walked away from the mortgage completely and allowed the home to be foreclosed upo
The FHA has announced it would accept electronic signatures (also known as e-signatures) on several FHA home loan documents. The new policies are found in detail described in FHA Mortgagee Letter 14-03.
Some of your FHA loan closing costs may be financed, and some may--after being negotiated between buyer and seller--be paid by the seller within the boundaries of the FHA loan programís rules. The borrower can also pay some closing costs out of pocket.