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|FHA Underwriting requirements may vary from one financing situation to another and from one location to another. The basic process and the general guidelines, however, remain the same. The loans insured by the Federal Housing Administration must be for the residential property that the borrower intends to buy or is presently using as the primary residence.
Moreover, maximum loan limits are different for different locations and depend chiefly on the current housing prices of the region concerned. Some loan options, such as 203k may require special underwriting requirements and so the guidelines for these may differ from the basic FHA underwriting guidelines.
FHA Underwriting Guidelines 2011
The basic FHA Underwriting Guidelines have been described in HUD Handbook 4155.1, which is available online at the website of the US Department of Housing and Urban Development. Changes are often made to these guidelines from time to time through various Mortgagee Letters. The resources being made available through fhaoutreach.gov contain the updated underwriting guidelines for 2011.
One can see the FHA manual to also find information on the underwriting requirements of HECM mortgage, Growing Equity Mortgage Program, Outlying Areas Mortgage Program and Miscellaneous Housing Mortgage Program. The FHA underwriting manual 1932 is infamous for certain provisions that promote racial discrimination.
FHA Underwriting Process
FHA underwriting process should be initiated by a specialist who has complete knowledge about the recent changes made to the guidelines. Several training classes and certification programs exist to help underwriters follow completely the HUD guidelines and maintain FHA standards in mortgage transactions.
For a homebuyer, it may be a better idea to prepare a checklist in order to ensure that all criteria pertaining to fulfilling the FHA financing requirements have been met. A borrower with a bad credit history or the one who has faced bankruptcy during the past two years should be extra careful in providing details of income and other proofs.
The timeline of the process varies according the lender processing your loan and the type of financing program you qualify for. The time required to process a streamline option is comparatively less than other financing or refinancing options. This is because the documentation requirements under the program have been reduced quite significantly. Ask your lender how much time they would take to process your loan and if you could do anything to shorten this timeline.
You may still have questions regarding FHA underwriting matrix and several other issues. Browse our website fha.realestatezing.com and you might find answers to your queries on some other pages of our website. However, we are only a guide and cannot be a substitute for the HUD resources available online at its website. HUD website has comprehensively covered all aspects of buying a home under an FHA insurance program.