What Is FHA Case Number And The FHA Loan Process

FHA Case Number on New Applications and Transfers

Gustan Cho Associates are mortgage brokers licensed in 48 states

In this blog, we will cover and discuss the FHA case number on new FHA mortgage applications. We will also discuss transfers from one lender to a new lender. FHA loans are the most popular loan program in the U.S. HUD, the parent of FHA, created and launched FHA loans so first time homebuyers and buyers with less than perfect credit can qualify for a home loan. HUD’s mission is to promote homeownership to hard-working American families by making homeownership affordable.

Benefits of FHA Loans

Benefits of FHA Loans

HUD created very lenient down payment and credit agency mortgage guidelines. HUD, th parent of FHA, wants hard-working Americans able to afford a home purchase. FHA loans are ideal for homebuyers with little down payment, lower credit scores, higher debt to income ratios, and homebuyers who had a prior bankruptcy and/or a housing event. Lenders can offer a 3.5% down payment home purchase FHA loan with only a 580 credit score at low mortgage rates due to the government guarantee.

HUD Agency Guidelines On FHA Loans

Borrowers applying for an FHA loan will be assigned a FHA Case Number. Borrowers will need to meet the minimum agency mortgage guidelines on FHA loans. HUD allows homebuyers to purchase a home with a 3.5% down payment with a 580 credit score.. Borrowers with under 580 down to 500 credit scores can qualify for FHA loans. However, any borrower with under 580 credit scores will need a 10% versus 3.5% down payment. Borrowers can qualify for an FHA loan with a prior bankruptcy and/or foreclosure as long as they meet the minimum waiting period requirements. Outstanding collections and charged-off accounts do not have to be paid to qualify for FHA loans. HUD’s role is to promote homeownership for homebuyers of all types. All FHA borrowers will need an FHA case number. You can only have one FHA case number.

Importance Of Case Numbers On FHA Loans

Case Numbers is required on all FHA loans. The FHA Case Number is a unique 10-digit number assigned to a borrower’s loan file. The Case Number is assigned by the Case Number Assignment on FHA Connection. The FHA Loan that this number is assigned is known as a case. The Case Number is mandatory for every FHA loan. This case number is assigned when a borrower applies for FHA loans. This holds true whether it is a purchase or refinance.

How To Read FHA Case Number

How To Read FHA Case Number

The first three numbers on an FHA Case Number state the area such as the county and state. The last three numbers are representative of the Sections of the ACT in where the FHA Insurance was issued for each house. The Case Number can be viewed on the top of each page of every completed FHA Home Appraisal. The Borrower who is buying a home with an FHA Loan, the property in which the home buyer is purchasing is assigned a Case Number. Case Numbers can be transferred from one borrower to another borrower. However, the Case Numbers cannot be transferred from the property.

How HUD Case Number Connections Work

When a home buyer who is pre-approved for an FHA loan starts the FHA loan process, the lender will need to get the borrower a Case Number on the property the borrower has a contract on. However, in the event, that the borrower decides not to purchase the home, the Case Number is now void.

Getting a New FHA Case Number

When the borrower decides to purchase another property, then they would need to get a new Case Number on the second property they are purchasing. With the above example, if another home buyer wants to purchase the original property that was canceled by the first borrower, then all the new home buyer needs to do is to have the Case Number for the original canceled property transferred to them. If there are multiple Lenders involved, that can be a cause for delays in the mortgage process. Lenders with original Case Numbers need to release the Case Number to the new lender.

How Long Is The FHA Case Number Valid

How Long Is The FHA Case Number Valid

If the FHA loan with a case number did not close in six months, the original FHA Case Number will be canceled. In the event FHA makes changes to HUD 4000.1 FHA Handbook with another revised HUD Handbook and Guidelines such as increasing FHA MIP, the changes take validity on Case Numbers that have been assigned on or after the date of the changes of FHA Programs and Guidelines. Any Case Numbers that are assigned prior to that date are still underwritten within the Guidelines before the changes as long. This holds true as the FHA Loan closes within a six-month window.

Qualifying For FHA Loans

FHA Loans is the most popular loan program in the U.S.  FHA Loans are popular with first time home buyers, home buyers with outstanding collections and charge offs, buyers with higher debt to income ratios, and homebuyers with little to no credit. Here are the basic HUD Guidelines on FHA loans:

  • 580 FICO credit score
  • 3.5% down payment
  • 46.9% front end and 56.9% back end DTI
  • Non-Occupant Co-Borrowers allowed
  • 100% of the down payment can be gifted
  • No Closing Costs: Closing Costs can be covered with seller concessions and/or lender credit

To qualify for FHA Loan, please contact us at Gustan Cho Associates at 1-800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. The Team at Gustan Cho Associates Mortgage Group is available 7 days a week, on evenings, weekends, and holidays.

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