FHA Loan Processing is the most time-consuming and generally takes 1-3 weeks. In this, the details that you have provided in your application is verified and cross checked so that no doubt remains while giving the loan. The FHA loan Processing is done on the part of lender.
FHA loan processing guidelines
The Federal Housing Administration loan processing can be done in two ways:
Online through Prospector
The loan processing is done through Loan Prospector takes less time than the manual underwriting. The Loan Prospector is an online system of processing FHA and VA mortgages. In this FHA loan processing is done by logging in with user name and password. Along with other details you also need to provide FHA Sponsor ID and FHA Lender ID.
FHA loan processing guidelines include the following things:
FHA Case Number
Credit Alert Interactive Voice Response System authorization (CAIVRS)
Checking if the condo or planned unit development (PUD) is approved by FHA
Checking the right FHA mortgage insurance premiums (MIP)
Finding FHA MIP refund information
Getting FHA refinance authorization
For more information on FHA loan processing guidelines you can do the following
Contact local HUD ownership center field office
HUD Handbook 4155
The lender that will file your application will first of all get the FHA case number. In case of townhomes , condo and PUD verification whether the property is approved by the HUD or not is done. This is followed by the verification of employment. In this FHA loan processing form is mailed to the employers with whom borrower has been working for the last two years. This may involve present as well as past employer. Then your bank account is verified for the past three month's account balance. The FHA loan application processing is then followed by the credit report checking and escrow instructions. Escrow instructions is generally a third party that acts as an accountant.
Further step involves the appraisal of the property that is done by the property appraisers. Here the conditions laid down by FHA are checked thoroughly and the time period for this is generally 2-10 days. The FHA loan processing then needs letter of explanation from the borrower showing work history, bankruptcy, work history etc. Any additional document or missing document is then also submitted with the lender.
FHA loan processing fee is charged along with other additional cost that are mandatory to check. The FHA loan processing will take less time if all the related documents are submitted and filed on time.
FHA loan processing training
The loan processing is not a simple task as it needs clear understanding of each and every term, rule and regulation followed while giving the loan. So the processing training is offered to the officers and candidates who are willing to start this profession.