August 8, 2024
When FHA loan applicants work on getting a mortgage and closing the deal, sometimes things don’t always go as smoothly or as quickly as planned.
In cases where there is a delay for some reason, do FHA loan rules include built-in time limits on how long a borrower and seller can go between loan approval and closing?
While a casual glance at the FHA loan rules may not turn up a specific rule that says “FHA loans must be closed in X number of days,” there are several requirements that add up to the need to get an FHA loan accomplished in a timely manner.
One is the length of your interest rate lock-in period.
Once it expires, you and the lender may need to renegotiate the rate, so it’s in the borrower’s interest to get the loan closed as soon as possible within the rate lock time frame you and your lender agreed upon.
This rate lock period may vary from lender to lender.
Time is a factor in important ways. Your most recent credit report, pay stubs, tax information, etc., must be on file to get the application approved.
But that’s not all.
The same rulebook also says certain documents can’t be older than six months and that some records or documentation must cover information from the last 24 months (job and tax information, for example.
If your lender needs more current information from you based on a delay in the loan closing, you will be notified, but anticipate needed new or updated paperwork depending on how long your loan is delayed, where applicable.
Your income, tax, and other financials may need an update in order to proceed.
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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