FHA Loan Underwriting Process

Once your file has been submitted to the investor, it will be underwritten. This is when an underwriter will review your file and render a loan decision. This portion of the loan normally take 2-5 days.

The underwriter will review of the information and make sure that it conforms to the guidelines that FHA has set forth. The underwriter will review all of the following aspects of the file:

• Income and Debt Ratios

• Employment History

• Credit History

• Savings / Source of Money for Down Payment

• Appraisal

Once the underwriter have reviewed all of the file provided, they will issue a writing decision. This may be one of the following:

• Approved - everything is file meets FHA guidelines  for final approval

• Suspended - additional documentation is needed to issue final approval

• Denied - aspects of the file do not conform to FHA guidelines

The underwriter will then issue a written loan approval, with any additional items documents that may need to be provided. This items are called "Conditions". A loan may be approved but still require updated "conditions" or items.

There are two types on conditions:

• Prior to Loan Documents - These are items that must be provided and reviewed by the underwriter before the loan documents can be requested.

• Prior to Closing - These are items that must be provided and reviewed by the underwriter and/or loan funder before the loan can close.

Once the underwriter or loan funder has received this conditions, they typically require 24 hours to clear them before we can order loan documents or fund the loan.

If your file meets most FHA guidelines initially, your file will be electronically underwritten for approval. This type of underwriting uses a computer and artificial intelligence to issue a decision on your file. The underwriter will simply review all of the information provided to insure that it matches to the information provided to obtain the electronic loan approval.

This is the type of underwriting we at FHA-Home-Loans.com, First Security Funding, provide for most clients, enabling formal loan approvals within minutes.