FHA Appraisal Transfer To A New Mortgage Lender

In this blog, we will discuss and cover the FHA appraisal transfer from your old lender to a new mortgage lender. FHA loans are 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 appraisals. The answer is yes. When a borrower applies for an FHA Loan, the borrower is assigned a case number from HUD on all FHA loans.

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 HUD Case Number. So when the borrower transfers FHA lenders from one lender to another, then the FHA Home Appraisal gets transferred as well.

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Reasons Why Borrowers Change Lenders

Over 75% of our borrowers at Gustan Cho Associates 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 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 that the loan officer did not properly qualify borrowers.

The Importance of Solid Pre-Approval Letters

Loan officers who hastily issue pre-approvals without adequately assessing borrowers risk encountering difficulties during the mortgage process. At Gustan Cho Associates, all pre-approvals undergo thorough vetting and qualification before being granted. In cases where a loan officer encounters a borderline file requiring a second opinion, we provide comprehensive credit approvals through TBD Property Underwriting.

This involves the full underwriting of files without a specified property, as endorsed by our underwriters. Borrowers receiving a TBD Property pre-approval from Gustan Cho Associates can be confident that they hold full credit approvals, with the only element missing being the identification of the subject properties.

At Gustan Cho Associates, the issuance of pre-approvals is a meticulous process that prioritizes proper borrower qualification to avoid complications during the mortgage journey. Unlike those who prematurely approve loans, our approach ensures that all pre-approvals are carefully reviewed and qualified.

When a loan officer encounters a borderline file requiring additional assessment, we offer a solution through TBD Property Underwriting, wherein fully underwritten files are provided without a specific property being identified. These underwritten files, signed off by our underwriters, serve as comprehensive credit approvals for borrowers. Clients receiving a TBD Property pre-approval from Gustan Cho Associates can be confident that they possess a thorough credit approval, with only the details of the subject properties left to be determined.

Changing FHA Lenders And How Easy Is It?

As mentioned earlier, over 75% of our borrowers are homebuyers who either have gotten a last-minute mortgage denial and/or are stressing over their mortgage process with another lender. Many of our borrowers are folks who already have an FHA home appraisal and paid for it. In cases where borrowers have already an FHA Appraisal, it is easy to transfer the FHA Appraisal to Gustan Cho Associates. Do you want to change your lender, Click here, we will help you.

How Can You Transfer Your FHA Appraisal From One Lender To Another

The FHA appraisal transfer occurs when a borrower’s loan is moved from one lender to another. Typically, when borrowers have previously undergone an FHA Appraisal, Gustan Cho Associates can expedite the loan closure process in less than two weeks. This streamlined approach allows for a smooth transition, ensuring a quicker and more efficient closing for borrowers who have already completed the FHA Appraisal process.

Transferring Your Mortgage To A Different Lender During the Mortgage Process

Transferring mortgage companies within the mortgage process is typically a straightforward procedure. In cases involving banks or mortgage bankers, borrowers must apply with another institution willing to accept them. A common concern arises when a borrower has already invested in a home appraisal for a specific property.

The question then arises: must the borrower commission a new appraisal? Fortunately, the answer is no. The new mortgage lender can request a transfer of the existing home appraisal from the previous mortgage lender.

This streamlined process not only saves time for the borrower but also eliminates the need for redundant expenses. The FHA appraisal transfer allows for a seamless transition between mortgage lenders without the hassle and cost of obtaining a new appraisal for the same property. It underscores the efficiency of the mortgage transfer process and ensures that borrowers do not bear the burden of additional appraisal expenses when switching lenders.

FHA Appraisal Transfer Process

When borrowers decide to shift their mortgage application from one lender to another, the initial lender must facilitate the release and transfer of the FHA loan to the new lender. This involves initiating the FHA appraisal transfer process by logging into the HUD mortgage website and formally requesting the loan transfer.

Fortunately, most lenders handle this procedure promptly, typically taking only a few minutes. A processor commonly manages the request for FHA appraisal transfer at the first lender’s end, and it’s important to note that no fees are associated with this transfer. Additionally, borrowers can cancel their loan application anytime during the mortgage process without incurring any costs or fees.

If a mortgage application transitions from one lender to another, the initial lender must release and transfer the FHA loan to the new lending institution. This can be done by requesting an FHA appraisal transfer through the HUD mortgage website. Most lenders promptly process this transfer request, typically taking only a few minutes.

It’s worth mentioning that the FHA appraisal transfer is usually handled by a processor at the original lender’s end, and importantly, there are no associated fees with this transfer. Borrowers also maintain the freedom to cancel their loan application at any mortgage process stage without incurring any costs 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.

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Need To Request FHA Appraisal Transfer Early

In numerous instances, borrowers opt to transition from an initial lender to a second one, often prompted by issues that arose with the first lender. The second lender typically faces time constraints in swiftly processing, underwriting, and obtaining clearance for closure on the loan file. I have frequently encountered scenarios where the second mortgage underwriter is on the verge of issuing a clearance to close, only to find that the FHA appraisal transfer still needs to be completed.

When borrowers switch from one lender to another, it is usually in response to challenges experienced with the initial lender. The second lender is typically pressed for time to efficiently handle the processing, underwriting, and clearance for loan closure. I have observed a common occurrence when the second mortgage underwriter is on the brink of granting a clearance to close, yet the FHA appraisal transfer remains pending.

How Long Does An FHA Appraisal Transfer From One Lender to Another Lender Take?

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 the new loan officer takes care of appraisal transfer requests the minute borrower switches to the second lender. This simple task will not haunt you late.

Home Buyers who either gotten a last-minute loan denial or are stressed during their mortgage process and need a mortgage lender licensed in multiple states with no lender overlays, please contact us at Gustan Cho Associates at 800-900-8569 or text for a faster response. Or email us at alex@gustancho.com. The team at Gustan Cho Associates is available 7 days a week, on evenings, weekends, and holidays.

FAQ: FHA Appraisal Transfer To A New Mortgage Lender

• What is an FHA loan? An FHA loan is a popular mortgage program in the United States, backed by the Federal Housing Administration (FHA), which operates under the United States Department of Housing and Urban Development (HUD).
• Can I transfer an FHA home appraisal to a new lender? Yes, if you have obtained an FHA home appraisal and decide to switch lenders, you can transfer the appraisal along with your HUD case number to the new lender.
• What are some reasons borrowers change lenders during the mortgage process? Borrowers may choose to change lenders due to various reasons, including last-minute mortgage loan denials, stress with the current lender, or dissatisfaction with the current lender’s service.
• What is the importance of a solid pre-approval letter? A solid pre-approval letter ensures that borrowers are properly qualified for their mortgage. Rushed pre-approvals without a thorough assessment can lead to complications during the mortgage process.
• How easy is it to change FHA lenders and do an FHA appraisal transfer? Changing FHA lenders and doing an FHA appraisal transfer is a relatively straightforward process, particularly if you have already completed the FHA appraisal process.
• Can I transfer an FHA appraisal to a different lender during the mortgage process? Yes, you can transfer an FHA appraisal to a different lender during the mortgage process without needing to commission a new appraisal for the same property.
• How does the FHA appraisal transfer process work? To transfer an FHA appraisal, the initial lender needs to log into the HUD mortgage website and formally request the transfer. Most lenders handle this process quickly, and there are no associated fees. Borrowers also have the flexibility to cancel their loan application without incurring any costs.
• Who handles the FHA appraisal transfer between lenders? The FHA appraisal transfer is typically initiated by the borrower’s current lender, and the new lender’s loan originator manages the process through their mortgage loan processor and operations staff.
• Is it important to request an FHA appraisal transfer early when switching lenders? Yes, it’s essential to request the FHA appraisal transfer promptly when changing lenders to avoid delays in the loan closing process.
• How long does an FHA appraisal transfer from one lender to another take? The actual FHA appraisal transfer can be executed quickly, often in a matter of minutes. However, delays can occur if there is a lack of prompt communication between the initial and second lenders. It’s advisable for the new loan officer to handle the appraisal transfer request promptly to avoid any potential delays in closing the loan file.

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This blog about FHA Appraisal Transfer To A New Mortgage Lender was updated on February 6, 2024.