FHA loan rules specify a list of required documents and paperwork needed to process an FHA home loan properly. In addition to your application data, the lender needs a list of things in order to perform the “mortgage credit analysis”.
Not all of these documents are supplied by the applicant, but some of the lender-generated paperwork requires the borrower’s permission in writing, such as the approval to pull credit reports from the three major credit reporting agencies Equifax, TransUnion, and Experian.
The list of required documentation also includes “evidence of a Social Security number” which is usually your Social Security card or other documents the lender may accept as proof of your number. The lender must complete a verification of employment, which means following up on the data you provided in your application for the FHA home loan or refinancing loan.
For borrowers with non-traditional jobs or seasonal work, there may be alternative employment documentation required. Your lender will tell you what additional information might be needed if that’s the case.
The FHA also requires federal income tax returns, especially when it comes to processing FHA mortgage loan applications from self-employed and small business owners. Tax returns are an important part of income verification, so borrowers should expect to be asked for returns and have at least two years of tax data available if and when needed.
The rules also specify how old these items may be. According to the FHA loan rulebook, HUD 4155.1 Chapter One, “Lenders must obtain the most recent documents required to perform the mortgage credit analysis.