September 14, 2012
A reader asks, “How long does it take a lender to let you know if you qualify for the FHA loan?”
The answer to this question varies greatly depending on the lender. There are many factors that can play a part in the processing time for an FHA mortgage including the lender’s backlog of work waiting to be processed and other issues. But there is an FHA loan rule that states the lender does have a time limit to take action on your loan application.
There is a 30 day time limit–the lender must act on your application within 30 days and inform you of that action.
That’s not necessarily a mandate to have your loan approved in 30 days, and there are caveats to the 30 day rule which borrowers should understand before calling the lender to see whether the application has been approved yet or not.
The 30-day rule is only for borrowers who have submitted complete applications–one that is missing information and needs further development will have to go “back to the drawing board” so to speak.
That’s why it’s important to resist the temptation to leave off past employment history or income data some borrower feel might hurt their chances–the lender will need to fill in any gaps in the record and eventually those items will come to light. For the most timely processing and approval process, it’s critical to have all information listed properly on the application the first time around.
From the FHA official site:
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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