FHA Lender Approval
HUD is getting a record number of applications for FHA Lender Approval. Somewhere around 1200 in the last 3 months of 2007 which is 4 times as many as they are used to getting.
I just got my FHA Approval on February 22, 2008. It took right at 2 months. I am hearing now that it is taking some 3 - 4 months. To me the worst part about FHA Approval, other than how long it takes, is not know ANYTHING while you wait.
We tried contacting HUD for status during the process and the email we received back wasn’t very helpful. All they told us was the date they got my application, which I already knew from the UPS tracking number!
I wish I could give you better news about how long it takes to get an FHA Approval, but there are just too many people applying for FHA.
Many people are applying purley because they heard FHA is the New Subprime, or they heard a story from a friend about a really tough loan they got approved. You can read my article about this, but if its the only reason you are applying for FHA - it isn’t the silver bullet to close garbage loans. Major lenders are already putting credit score requirements in place to combat this concept.