This BLOG On FHA Home Appraisal Transfer Mortgage Guidelines Was UPDATED And Published On January 8th, 2019
HUD, the parent of FHA, has specific mortgage guidelines on FHA Home Appraisal Transfer from one lender to another.
- There are times where borrowers needs to change lenders
- It can be due to a last minute mortgage denial and/or stress during mortgage process
- Or it can be simply because they do not get along with their loan officer
- Or the loan officer did not tell borrowers the lender has a bunch of overlays
- Mortgage underwriters can ask for additional conditions after conditions which delays closings is another reason borrowers change lenders
Great news is if borrowers are intending in changing lenders during mortgage process, FHA Home Appraisal Transfer can be done at no cost to borrowers.
Main Reason For Borrowers Changing Lenders
The most important part of the overall mortgage process is the pre-approval stage.
- The number one reason for last minute loan denial and/or stress during mortgage process is due to loan officers not properly qualify borrowers
- Over 75% of our borrowers at Gustan Cho Associates at Loan Cabin Inc. are folks who are changing lenders to us
- This is due to either stress during mortgage process and/or last minute mortgage denial
Again, primary reason for changing lenders to us at Loan Cabin Inc. is due to loan officers not properly qualifying borrowers.
How Does FHA Home Appraisal Transfer Process Work When Borrowers Are Changing Lenders
Borrowers changing lenders during their mortgage process need to request FHA Case Number transferred.
- The original lender needs to transfer the FHA Case Number when borrowers requests it in writing
- With the transfer the case to the second lender, the FHA Home Appraisal Transfer is done as well
Here is the general FHA Home Appraisal Transfer Process And How It Works:
- Borrowers needs to request the original lender to transfer the FHA Case Number
- This can be done by emailing their loan officer at the original mortgage company and/or mortgage processor
- Request a copy of the original appraisal from the original lender and submit it to the new lender
- This can be done by emailing the appraisal
- Under HUD Guidelines, mortgagees must transfer the FHA Appraisal within five business days of the request by borrowers
- The original lender needs to be reimbursed for the home appraisal in order for them to transfer it
Re-Certification Of FHA Appraisal
The original home appraisal needs to be valid in order for the new lender to be able to use it:
- The original inspection date of the property by the appraiser is considered the effective date
- Older appraisals can be invalid and a new certification may need to be ordered
- New lender needs to make sure the FHA Case Number is not expired or if it is nearing expiration, a new home appraisal re-inspection needs to be ordered
- Home Appraisals that has been updated can be used by new lenders
- Same home appraiser needs to certify it
- There is no decline in market value
- Any improvements to the home that increases value needs to be noticeable from the photos and/or visible in the public
- Meet property standards and meet HUD Inspection Guidelines
- FHA Appraisals are valid for 120 days from the date of inspection and cannot be previously updated
FHA Case Numbers Transfer Process
Here is how FHA Case Numbers are transferred from one lender to another:
- In order for a second mortgage company to work on FHA Loan started by a previous lender, the FHA case number must be transferred to the new lender
- The new lender can do a case query on FHA Connection in order to figure out what the current FHA case number is
- New lender with the case number will ask for a borrower’s authorization and letter of explanation that is signed and dated
Here is a sample letter for borrowers to request FHA Case Numbers to new lender when changing lenders:
Borrowers who are having a stressful loan process with their current lender and need to change lenders with no overlays, please contact us at Gustan Cho Associates at Loan Cabin Inc. at 262-716-8151 or text us for faster response. Or email us at email@example.com. The Gustan Cho Team at Loan Cabin Inc. are direct lenders with no overlays on government and conventional loans. Our licensed and support personnel is available 7 days a week, evenings, weekends, and holidays.