This Article Is About FHA Appraisal Transfer And FHA Case Number Transfers
FHA Loans is the most popular loan program in the United States.
- The United States Department of Housing and Urban Development (HUD) is the parent of the Federal Housing Administration (FHA)
- HUD permits FHA Appraisal Transfer where Conventional Loan Appraisals cannot be transferred per Fannie Mae and Freddie Mac Guidelines
- Most lenders will honor an FHA home appraisal to be used on conventional loans
- However, a conventional loan appraisal cannot be used on an FHA loan
In this article, we will cover and discuss the rules and regulations when a borrower needs to transfer an FHA home appraisal from one lender to another.
Transferring An Appraisal From One Lender To Another
There are cases where a mortgage loan borrower applies for an FHA Loan with one particular mortgage company and decides to change lenders due to the following reasons:
- Gets a last-minute mortgage loan denial
- Is going through stress with the current lender
- Is not happy with the current lender
When the above happens, mortgage borrowers need to change to a different mortgage lender.
- However, borrowers already forked over the money for their FHA Home Appraisal and often wonder if they can transfer their home appraisal
- The answer is yes
- When a borrower applies for an FHA Loan, the borrower is assigned an FHA Case Number
- If the lender that the borrower initially contacted ordered the appraisal and it is an FHA Home Appraisal, that appraisal is stuck with the borrower’s FHA Case Number
So when the borrower transfers FHA Lenders from one lender to another, then the FHA Home Appraisal gets transferred as well.
Reasons Why Borrowers Change Lenders
Over 75% of our borrowers at Gustan Cho Associates are borrowers who have either:
- Gotten a last-minute mortgage loan denial
- Stressing during the mortgage process with their current lender
- Cannot qualify with their current lender because the lender has mortgage overlays
The main reason why borrowers get denied at the last minute or stress during the mortgage process with a lender is that borrowers were not properly qualified by their loan officers.
- There is no reason for a last-minute loan denial or stress during the loan process
- The main and only reason for this is because the loan officer did not properly qualify borrowers
- Loan officers issuing pre-approvals pre-maturely without properly qualifying borrowers are asking for trouble during the mortgage
- All pre-approvals at Gustan Cho Associates are fully vetted and qualified prior to being issued
- If the loan officer sees a borderline file where he needs a second opinion, we offer full credit approvals (TBD PROPERTY UNDERWRITING)
- TBD Property Underwriting are fully underwritten files without a subjected property that is signed off by our underwriters
Borrowers who get issued a TBD Property pre-approval at Gustan Cho Associates can rest assured they are full credit approvals. The only thing missing is the subject properties.
Changing FHA Lenders And How Easy Is It?
As mentioned earlier, over 75% of our borrowers are homebuyers who either gotten a last-minute mortgage denial and/or are stressing over their mortgage process with another lender.
- Many of our borrowers are FHA Borrowers who already have an FHA Home Appraisal and paid for it
- Cases where borrowers have already an FHA Appraisal, it is easy to transfer the FHA Appraisal to Gustan Cho Associates
- The FHA Appraisal Transfers when the FHA Case Number is transferred from one lender to another lender
- Normally in cases where borrowers already have an FHA Appraisal done, it will take Gustan Cho Associates Mortgage Group less than two weeks to close the loan
It is normally very easy to transfer mortgage companies during the mortgage process;
- When this happens with a bank or mortgage banker, borrowers need to apply elsewhere where they are willing to take them
- If the borrower has already paid for a home appraisal on a subject property, does the borrower need to order a new appraisal?
- The good news is NO
What the new mortgage lender can do is request a home appraisal transfer from the old mortgage lender.
FHA Appraisal Transfer Process
If borrowers’ mortgage application is moved from one lender to a different lender, the first lender needs to release and transfer the FHA case number to the second lender. This is done by requesting the appraisal transfer through logging into the HUD mortgage website and requesting the transfer of the FHA case number to the new lender.
- Most lenders have no problem in doing this in a timely manner
- This is a very simple process that only takes minutes to do
- It is normally executed from a processor of the first lender
- There are no fees associated with the FHA appraisal transfer
A borrower can cancel a loan application anytime during the mortgage process and at no cost and/or fees.
Who Does The FHA Appraisal Transfer?
FHA appraisal transfer is normally done between lenders.
- Borrowers need to request this to their current lender and the new lender will assist
- The new lender’s loan originator will be handling this through their mortgage loan processor and operations staff
Need To Request FHA Appraisal Transfer Early
Many times when borrowers switch from one lender to a second lender. It is due to the fact that something went wrong with the first lender. The second lender is normally rushed to get the file processed, underwritten, and cleared to close.
- Many times I have come into situations where the second mortgage underwriter is about to issue a clear to close but the FHA appraisal transfer has not been done yet
- FHA appraisal transfer can be done and executed in a matter of minutes
- Many times trying to get off the first lender or loan originator getting back to the second lender causes delays
- This can cause a delay in closing a loan file on time
- Make sure new loan officer take care of appraisal transfer request the minute borrower switches to the second lender
- This simple task will not haunt you later
Home Buyers who either gotten a last-minute loan denial or are stressing during their mortgage process and need a direct lender with no lender overlays, please contact us at Gustan Cho Associates at 262-716-8151 or text for a faster response. Or email us at email@example.com. The team at Gustan Cho Associates available 7 days a week, evenings, weekends, and holidays.