FHA Loans Mortgages

Who Approves FHA Loans?

The FHA (Federal Housing Administration) issues home loans that are backed by the government. For many borrowers, these are an excellent choice since they have lower interest rates and qualification is a possibility even for those with less-than-perfect credit. As a potential homeowner, you may be interested in the process so you can discover if it would be a good option for you. For instance, you may wonder—who approves an FHA loan? We’ve put together some basic information that may be of assistance.

Who Offers FHA Loans?

The FHA works with certain approved lenders to offer these loans. For you, this is good news. You don’t have to go to the FHA directly; you may be able to use a lender you are already comfortable with or choose another approved lender. Liberty Financial in Louisville, KY, is an approved lender and we are always available to help with your questions.

Additional Considerations

An FHA loan does have certain requirements that a traditional loan may not. Not only will the loan have to appraise at the sales price, but the inspector may also have certain issues that they require be corrected before the loan will be approved. A good lender will work with you through this part of the process to make sure you know what’s happening.

The Underwriter Makes the Final Decision

Once your lender has put together all the paperwork for your loan application, it will be sent to the underwriter for approval. Assuming you have been pre-approved and you have not had any significant life changes, there is usually nothing to worry about while the underwriter processes your loan. You may be asked for additional documentation, but in most cases (with pre-approval) the process goes relatively smoothly at this point.

There is a lot more to learn about the FHA lending process. That’s why we have put together an easy-to-follow guide to FHA loans. Also, if you want to talk to an expert about buying a home and the loan options available to you, reach out to us at Liberty Financial. We would love to help you decide if an FHA loan is the right choice for buying your dream home.