What Is the FHA Underwriting Process?

The FHA underwriting process is when your loan is being reviewed for approval with the decision maker. An underwriter will consider all of the information you entered on your application to decide whether or not you qualify. The process usually takes between 3 and 5 days as the underwriter reviews such items as:

  • Your income and debt ratio - Your income does not matter as much as how much debt you have compared to that income. The lower your debt compared to your income, the more likely you will be approved for an FHA loan.
  • Your employment history - It is best to have consistent employment for at least 2 years for an FHA loan. Showing increases in salary will also help move your loan through the underwriting process.
  • Your credit history - Many people think bad credit borrowers can get FHA loans, but this is not the case. You will need to show you managed debt responsibly in the past and have never defaulted on a government loan.
  • Your ability to make a down payment - FHA loans offer lower down payment options, but you will still need to have money saved to handle the requirement.
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