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FHA Loan Applications: What Borrowers Need To Have Ready

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When you’re getting ready to fill out an FHA loan application, knowing in advance what documentation you’ll need to get the process moving forward can be a big help. There are individual lender requirements that you’ll need to get directly from your loan officer, but the FHA loan rulebook (HUD 4155.1) lists some things the FHA requires as part of the process the lender uses to verify your employment, income, and credit data.

The list of documentation includes (but may not be limited to) the following list found HUD 4155.1 Chapter One Section B:

  • general mortgage credit analysis documents
  • evidence of Social Security Number
  • verification of deposit
  • verification of employment (VOE)
  • alternative employment documentation
  • appraisal documentation.

FHA loan rules in Chapter One say, “Lenders must obtain the most recent documents required to perform the mortgage credit analysis. ‘Most recent’ refers to the most recent document available at the time the loan application is made.”

In addition to the above documentation, the lender may in some cases require the borrower to provide verification of previous rent and rental agreements or documentation on past mortgage payments. FHA loan rules say this documentation must be one of the following:

  • direct written verification from the landlord or mortgage servicer
  • information shown on the credit report, or
  • the most recent 12 months of cancelled checks or receipts for payment of the rent/mortgage.

For Verification of Deposit, the FHA loan rulebook says, “The lender must obtain a written Verification of Deposit (VOD) and the borrower’s most recent statements for all asset accounts to be used in qualifying” but there is an alternative to providing the VOD.

According to Chapter One, “As an alternative to obtaining a written VOD, the lender may obtain from the borrower original asset statements covering the most recent three-month period. Provided that the asset statement shows the previous month’s balance, this requirement is met by obtaining the two most recent, consecutive statements.”

Verification of Employment requires the most recent pay information in writing, “showing year-to-date earnings of at least one month, and one of the following to verify current employment:

–a written VOE verbal verification of employment,

or

–electronic verification acceptable to FHA.”

For more information on these requirements, speak to a loan officer or contact the FHA directly.

Do you have questions about FHA home loans or refinance loans? Ask us in the comments section. You can apply or get pre-qualified for an FHA loan at www.FHA.com, which is a private company, not a government agency.

Joe Wallace - Staff Writer

By Joe Wallace

October 25, 2013

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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FHANewsBlog.com was launched in 2010 by seasoned mortgage professionals wanting to educate homebuyers about the guidelines for FHA insured mortgage loans. Popular FHA topics include credit requirements, FHA loan limits, mortgage insurance premiums, closing costs and many more. The authors have written thousands of blogs specific to FHA mortgages and the site has substantially increased readership over the years and has become known for its “FHA News and Views”.

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