all great answers below...i have done low risk, higher risk, tough mortgage financing for almost 14 years.i also do low and higher risk fha loans..why not call me to get things started?. bob mcclure- (248) 974-4444....i am licensed in your state..mortgage now- farmington, michigan...

Sun Jul 27 2008, 09:03

It's not up to fha, it's up to the lender.

Sun Jul 20 2008, 21:56

FHA doesn't approve/decline loans. Lenders do that!!
FHA loans are just insured by the Federal Government.

Sun Jul 20 2008, 21:17

FHA is a guaranty program run by Housing and Urban Development (HUD). HUD (or FHA) do not make loans -- they can guarantee repayment of loans made by lenders.
FHA does not turn down or reject borrowers. They have guidelines that lenders must adhere to for the lender to receive the guarantee on the loan that the lender intends to make to you. If anyone turns you down, it is because either
a) you do not meet the guidelines from FHA,
b) the property does not meet the guidelines from FHA , or
c) either you or the property do not meet the lender's guidelines -- not FHA's.
In fact, it is most probably on a denial of credit that you do not meet the lender's guidelines. The lender is entitled to make more strict rules than FHA and most of them do. The way it works is that you must meet the lender;s guidelines first and be thought credit-worthy by the underwriter. Then if that is true, the property is evaluated for its use as collateral in making the loan, usually by appraisal. If that is true also, then the guidelines for FHA come into play and you and the subject property must meet FHA's guidelines.
Since lenders are not uniform across all states, their own rules are not uniform. Many lenders operate only in certain states, so the lender guidelines vary quite a bit. You can be rejected by one lender and accepted by another. It happens very often.
The FHA guidelines, however, are uniform across all states. The exceptions are not worth pointing out, because they are so rarely invoked.
Your Denial of Credit form will describe what the problem is with either your credit, your income, the property or whatever else. Almost always the problem is with the borrower's credit. or debt-to-income ratio (DTI) This does not mean that all lenders will deny you credit. It is possible to take your situation to another lender and get approved for the same loan, same property, same credit report. Ask. Many lenders will not even charge you to get an opinion on whether the loan is do-able or not. Application fees may apply if you decide to follow through, though.

Sat Jul 19 2008, 00:12

Cindy,

No they cannot, FHA is a government endorsed loan and thier guildelines lend in all 50 states. They bank servicing the loan however has the ability to decide to lend in that region or not. Hope this helps!

Brent Bester
Mortgage Professional
614-622-8916

Fri Jul 18 2008, 15:18