FHA Pre-Licensing Checklist
Here are the most common licensing issues facing new FHA license applicants. For a complete list of FHA licensing requirements, consult the applicable FHA Handbooks. Better yet – call us to take the mystery out of FHA licensing.
- 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 Mortgagee: $1,000,000
Liquidity – At least 20% of required adjusted net worth — must be in liquid assets.
- Warehouse line of credit (Non-Supervised Mortgagees).
- No sole proprietors.
- LLC member restrictions.
- Commercial office space.
- Qualified, full-time, single-employment, principal corporate officer.
- Dual employment restrictions. (CA BRE brokers – pay attention!)
- Outsourcing restrictions.
- FHA compensation restrictions.
- Background checks (credit, criminal, regulatory).
- No “Net Branching”.
IMPORTANT: FHA IS A LENDING PROGRAM – NOT A STATE MORTGAGE LICENSE (REGARDLESS OF YOUR FHA-APPROVED LENDING AREAS)!