FHA Approved Lender
"Save yourself a big headache. If you are going FHA on your mortgage make sure your lender is FHA certified..." by: Leslie Collins - 3/2008
FHA Approved Lender - FHA loans are roaring back into the marketplace mainly because credit requirements are much less stringent than conventional loans. FHA does not rely solely on your FICO score to evaluate credit-worthiness which makes it much easier to qualify for a mortgage.
Finding an FHA Approved lender is the first step in buying or refinancing a home using FHA guidelines.
Not all lenders can write FHA loans. If you are buying or refinancing a home you'll need to make sure the mortgage broker has a Title II FHA certification. If you are looking for a home improvement loan the lender will need a Title I certification.
Finding an Approved FHA Lender
Finding an approved FHA broker is easy - most major lenders will offer FHA loans. Most online lenders will have FHA certified brokers - the quickest way to find out is to search online.
Find 2-3 potential lenders, call their 800 number and ask if they are Title I certified.
Step 1. Visit any online mortgage broker or bank's website. You should see links describing different types of mortgage loans like conventional, adjustable, VA and FHA.
Step 2. Navigate to the FHA page.
Step 3. If your looking for a local office there might be a ZIP code search right on the page. Enter your ZIP and you should get results of the closest FHA approved lenders.
To avoid big headaches, make sure you know up front that the lender is a registered FHA approved lender before you get involved in the application process.
Why Should You Use an Approved FHA Lender?
The origination fee the broker charges will be paid to the broker by FHA only if they are certified - Title I or Title II.
It's possible to engage a non-FHA broker to assist with an FHA loan, however the non-FHA broker can not earn an orgination fee per the RESPA rules.
The FHA Approved Lender Guidelines
The Institution applying for FHA approved lender status must be based in the US, either a corporation or partnership comprised of at least 2 people.
The organization seeking FHA lender status must have a net worth of at least $250,000. 20% or $100,000 of the net worth must be liquid assests - the lesser of the two.
The FHA office space needs clear and concise identification and the location should be in a commercialy zoned area.