FHA Appraisal Transfer And FHA Case Number Transfers

FHA Appraisal Transfer And FHA Case Number Transfers

This BLOG On FHA Appraisal Transfer And FHA Case Number Transfers Was UPDATED On December 16th, 2017

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). FHA permits FHA Appraisal Transfer where Conventional Loan Appraisals cannot be transferred per Fannie Mae and Freddie Mac Guidelines.

There are cases where a mortgage loan borrower applies for a 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 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 a FHA Loan, the borrower is assigned a FHA Case Number
  • If the lender that the borrower initially contacted ordered the appraisal and it is a 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 The Gustan Cho Team at USA Mortgage are borrowers who have either:

  1. Gotten a last minute mortgage loan denial
  2. Stressing during the mortgage process with their current lender
  3. Cannot qualify with their current lender because of 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 because 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 and issued pre-approvals pre-maturely without properly qualifying borrowers
  • All pre-approvals at The Gustan Cho Team at USA Mortgage are full credit approvals (TBD PROPERTY UNDERWRITING) and signed off by our underwriters

Borrowers who get issued a pre-approval at The Gustan Cho Team at USA Mortgage have full credit approvals and 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 home buyers 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 a FHA Home Appraisal and paid for it
  • Cases where borrowers have already an FHA Appraisal, it is easy to transfer the FHA Appraisal to The Gustan Cho Team at USA Mortgage
  • The FHA Appraisal Transfers when the FHA Case Number is transferred from one lender to another lender
  • Normally on cases where borrowers already have a FHA Appraisal done, it will take The Gustan Cho Team at USA Mortgage 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, the mortgage loan borrower needs to apply elsewhere where they are willing to take the mortgage loan borrower
  • If the FHA insured mortgage loan borrower has already paid for a FHA appraisal on a subject property, does the mortgage loan borrower need to order a new FHA appraisal?  
  • The good news is NO
  • What the new mortgage lender can do is request a FHA appraisal transfer from the old mortgage lender

FHA Appraisal Transfer Process

If borrowers mortgage application is moved from one mortgage loan lender to a different mortgage lender, the first mortgage lender needs to release and transfer the FHA case number to the second mortgage lender. This is done by requesting the FHA appraisal transfer through logging into the FHA mortgage website and requesting the transfer of the FHA case number to the new mortgage lender.

  • Most FHA mortgage lenders have no problem in doing this in a timely manner
  • This is a very simple process which only takes minutes to do and is normally executed from a processor of the first mortgage lender
  • There are no fees associated with the FHA appraisal transfer
  • A home mortgage 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 the mortgage lenders.

  • The mortgage borrowers needs to request this to their current lender and the new lender will assist
  • The new mortgage lender’s mortgage loan originator will be handling this through their mortgage loan processor and operations staff

Need To Request FHA Appraisal Transfer Early

Many times when a mortgage loan borrower switches from one mortgage lender to a second mortgage lender, it is due to the fact that something went wrong with the first mortgage lender. The second mortgage 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 of the first mortgage lender or the mortgage loan originator getting back to the second mortgage lender causes delays which can cause a delay in closing a mortgage loan file on time
  • Make sure that new loan officer take care of the FHA appraisal transfer request the minute the mortgage loan borrower switches to the second mortgage 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 needs a direct lender with no lender overlays, please contact The Gustan Cho Team at USA Mortgage at 262-716-8151 or email us at gcho@usa-mortgage.com. We are available 7 days a week, evenings, weekends, and holidays.

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