FHA Requirements
A Good Loan Checklist Creates a Smooth Application
Before you start the FHA loan process, be prepared to provide some information to your loan officer. Have it ready now to save time later.
- Address to your place of residence (past two years)
- Social Security numbers
- Names and location of your employers (past two years)
- Gross monthly salary at your current job(s)
- Pertinent information for all checking and savings accounts
- Pertinent information for all open loans
- Complete information for other real estate you own
- Approximate value of all personal property
- Certificate of Eligibility and DD-214 (for veterans only)
- Current check stubs and your W-2 forms (past two years)
- Personal tax returns (past two years), current income statement and business balance sheet for self-employed individuals
In addition, you will need to pay for a credit report and appraisal of the property.
As the buyer and borrower, you will have items on your checklist that are required by your lender, the seller, and even the title company.
The closing checklist covers all the fees to be paid, the information to be provided, and the disclosures to be signed before the title is conveyed to you. Having this checklist ready helps you stay on track as a buyer, and ensures that your closing goes the way you expect.
- IDENTIFICATION
All parties at the closing should have valid ID. - POLICY OF TITLE INSURANCE
You must pay for title insurance that guarantees the property is free of previous claims or liens. - INSURANCE
Before you can close on the property, you need to secure homeowner’s insurance, which insures the property in the case of damage. - CLOSING FUNDS
You must bring all funds agreed upon, in the form of a cashier’s check or via electronic wire.
Take the time to discuss the items on your checklist with your realtor, to make sure there is nothing you’re forgetting, and to have the peace of mind that after the closing settlement you’ll be able to move into your new home.
FHA Loan Requirements
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FHA Loan Articles and Mortgage News
April 7, 2024 - If the home can’t pass the appraisal or if the home can’t be repaired to pass an appraisal, this could result in the lender denying the loan. The same is true if the home is located too close to high voltage power lines, oil or gas drilling operations, or in certain natural disaster hazard zones.
April 6, 2024 - The FHA reverse mortgage is an option for these qualifying applicants that lets the borrower take cash at closing time on a loan that is not due until the borrower dies, sells the home, or stops using it as the primary residence.
April 5, 2024 - FHA mortgages are a good idea for borrowers who want to save money upfront on the mortgage and ideally have FICO scores of 580 or better. Those with FICO scores below 580 should work on credit and other financials before applying for a loan.
April 4, 2024 - Trying to time your commitment to a specific day doesn't make sense when rates dip lower. Why? Because you can’t get an interest rate lock commitment from the lender until you are ready to commit to a specific property you want to buy.
April 3, 2024 - If you buy a fixer-upper with an FHA loan, you must hire contractors to do the labor. There are some general guidelines about this process all borrowers should know before committing. Don’t consider unlicensed contractors. Your lender can’t approve a loan under such circumstances.
