|FHA Lenders originate loans to people who meet the qualifying guidelines of the United States Department of Housing and Urban Development. As the objective of HUD is to facilitate easy homeownership solutions to all people across the country, the underwriting guidelines an FHA lender must follow have been made less stringent and more flexible.
Moreover, there may even be lenders who have financing solutions for people with bad credit and bankruptcy. In return, the FHA offers complete security to the investments made by an approved lender by making it mandatory for the borrowers to pay for insurance premiums. Should a borrower default on mortgage, the HUD takes the responsibility to repay the balancing loan amount.
FHA Lender List
FHA Lender List is available online at HUD website where one is also allowed to filter the search using some predefined criteria, such as location, insurance type, rehabilitation and servicer-originator type. Only those who fulfill the FHA lender approval requirements are able to make it to the list.
This nationwide list covers comprehensively each and every state of the US including Ohio, Michigan, Maryland, PA, MA, GA, Colorado, California, New Jersey, Florida, Wisconsin, SC, VA, Texas and Utah. ID lookup is also possible and you can confine your search to a county or city level as well. You can even find an FHA lender within one mile radius of your location no matter where you are – San Diego, Chicago, Las Vegas or South Florida.
FHA Lender Approval Requirements
The approval regulations have been revised and FHA no longer accepts applications for Supervised and Non-supervised Loan Correspondents. Instead one can apply for either Title I or Title II approval. It is also possible to apply for both, but not at the same time.
One has to become either a Title I or Title II lender by submitting the required forms and applicable fee, which is $1000. The payment must be made electronically through Department of Treasury’s PAY.gov system. To apply for another lender program, one need not pay the application fee again, but is required to submit the approval package they already have.
The Handbook 4700.2 offers a guide to all approval requirements and the HUD 92001-A is the form you will need for FHA lender approval application. More information regarding certification, eligibility, net worth requirements, application fees can be had from ML 2010-12 and ML 2009-31.