FHA Pre-Licensing Checklist
Mistakes in the FHA licensing process can cause lengthy – and costly – delays. Listed below are some of the potential FHA licensing issues you may experience when attempting to obtain an FHA lender approval.
- Company CPA-audited financial statements (no more than 12 months old)
- Net Worth (initial approval) – Subject to additional FHA net worth and liquid asset rules
- Non-Supervised Mortgage: $1,000,000
- Liquidity – At least 20% of required adjusted net worth — must be in liquid assets
- Warehouse line of credit (Non-Supervised Mortgages)
- No sole proprietors
- LLC member restrictions
- Commercial office space
- Qualified, full-time, single-employment, principal corporate officer
- Dual employment restrictions (CA DRE brokers – pay attention)
- Outsourcing restrictions
- FHA compensation restrictions
- Background checks (credit, criminal, regulatory)
- No “Net Branching”
- Management lending experience requirements
- Licensed office requirements
Note: this list is not exhaustive of all the licensing issues you might encounter when trying to obtain your FHA lender approval. For complete FHA licensing requirements, consult the applicable FHA Handbooks.
IMPORTANT: FHA IS A LENDING PROGRAM – NOT A STATE MORTGAGE LICENSE (REGARDLESS OF YOUR FHA-APPROVED LENDING AREAS)!
Call us today to learn how Vestevich & Associates, P.C. can assist your company in obtaining its FHA lender approval!