Can Someone Explain Why My File Needs To Go To FHA before Clear to Close?

[Anonymous]

My loan is almost done.  Appraisal, survey, conditions ect is done.  My LO says they have to send a copy of the file to FHA for PMI

Does anyone know what the process is and what the qualifications are for it to be approved quickly?

[JM-AM]

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@Anonymous wrote:

My loan is almost done.  Appraisal, survey, conditions ect is done.  My LO says they have to send a copy of the file to FHA for PMI

Does anyone know what the process is and what the qualifications are for it to be approved quickly?

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Your PMI is based off the information received and generally is a quick process. Depending on how busy the FHA office is you could have an answer with-in 24-48 hours once they receive the file. It is not a long process and if your LO stays on top of everything you should be closing in a weeks time. Good Luck

[Anonymous]

that sounds great.  What are the chances that they dont need any conditions met?  My bank needed like 6-7, but we met them quickly.  And i am assuming that because my bank said everything looked good approval wise, i should have no issues with FHA?

[JM-AM]

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@Anonymous wrote:

that sounds great.  What are the chances that they dont need any conditions met?  My bank needed like 6-7, but we met them quickly.  And i am assuming that because my bank said everything looked good approval wise, i should have no issues with FHA?

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FHA does not have conditions that you would have to meet personally. FHA looks over the appraisal and all information to make sure everything is okay for approval. The things that they look for have more to do with the home and that it meets FHA requirements. If something is not met with their requirements then they would say it would have to be fixed and or replaced before being approved. Most LO's know the requirements and usually let you know before submitting file. 

[Anonymous]

The news keeps getting better and better.

My LO said that everything turned out great, the only issue was our agreement price was 53k, but the appriasal came in at 52.5k, we did however get the purchase price lowered.

[Tooliebell]

You are moving right along!

[DallasLoanGuy]

sounds good

[Anonymous]

so my last question on the matter is this,  The FHA people could technically deny our loan because of something else other than the appraisal right ?  Say if fha does not like my middle score of 634 or if fha does not like our DTI of 30%, they could just say no?  What happens then?

FHA has had our file since tuesday afternoon and we still have not heard from them 

[Booner72]

I don't think FHA would deny based on scores  or DTI as long as these things fit the FHA criteria.  which you do. 

FHA insures the loan for the lender.  The underwriter is the one who has the final say on everything, once FHA says to go ahead and approve that house.

At least I THINK this is how it works.  I've never read one post here of FHA themselves denying.

[Anonymous]

so what happens if FHA says they wont insure the loan?  my LO said they will honor the approval and they fund the loan