June 21, 2017
When you’re ready to apply, where do you get an FHA loan? There are plenty of misconceptions about the FHA home loan process, which usually get cleared up fairly quickly once you begin working with a participating FHA lender. But in the planning and saving stages of the loan, it’s good to know the facts about FHA loans, where to get them, and how they work.
FHA Loans Are Offered By Participating Lenders
Not all lenders participate in the FHA loan program, some are not permitted to participate, and some may not be certified by the FHA yet. Borrowers who need an FHA mortgage will need to find an active, participating lender who can qualify or prequalify the borrower for a mortgage loan. Participating lenders advertise their affiliation with the FHA as well as the FHA loan products they offer.
In some cases you may be able to do the initial loan screening online. Once you are ready, you can apply online, but you’ll need a variety of information including your estimated budget for the purchase, the desired term of the loan you seek (15 or 30 years), and the type of home loan you wish to prequalify for-a new purchase loan or an FHA refinance loan.
FHA Loan Types
There are a wide variety of FHA loans to choose from, but not all lenders will offer all of them. A single participating lender may opt not to offer mobile home loans, new construction loans, etc. Many do, but some opt out of certain types of mortgages that don’t fit the market they operate in. Most typical suburban home purchase loans may be available from a given lender.
FHA Jumbo loans, FHA condo loans, FHA refinance loans for certain types of circumstances may have added requirements, or may not be available at application time depending on the lender’s standards and experiences in that housing market. In some cases it may be a simple matter of moving on to a new lender who can work with you, in other cases depending on circumstances you may need to figure out what the best loan is for your situation.
Searching For A Participating FHA Lender
It pays to shop around. Not all lenders offer the same FHA loans, but it is also true interest rates and other important features of your loan may vary as well. The lowest interest rate offered may not be the most advantageous choice if the lender features higher closing costs in other areas. Get the best deal you can by comparing options between several FHA lenders and making the most informed choice possible.
Bruce Reichstein has spent over three decades as an experienced FHA and VA home loan mortgage banker and underwriter where he was responsible for funding “Billions” in government backed mortgage loans. He is the Managing Editor for FHANewsblog.com where he educates homeowners on the specific guidelines for obtaining FHA guaranteed home loans.
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