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how long is typical processing on FHA loan and underwriting? minimal debt...good credit score.

I started in late april and it is now almost the end of JUne and the underwriters still have not responded. I am suppose to know this week? is this to long? thanks so much.
  • June 22 2009 - Wakefield
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Answers (10)

You may be right about that...and yes I do not work for BoA.
  • May 11 2010
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I guess you Andrew must work for another bank then, I don't think it will take less than that in bofa. I'm considering another alternative now thinking that even if I start now it will close faster that bofa
  • May 11 2010
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jan,

This thread is almost a year old...No reason for an FHA loan to take 3 months to close.  I am closing one on Friday (5/14) that I took the application on Monday (4/26).  18 days from application to close.  Do all loans close this fast no but no reason they can't or don't.
  • May 11 2010
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I'm in the process of getting a loan with BOFA and it took more than 2 months. We just got the appraisal last week and now we are waiting for the underwritters to approve it, then it goes to FHA to approve the insurance. So I guess it could take up to a month more, total: 3 months :(
  • May 11 2010
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Profile picture for AcademyMortgage
While many mortgage brokers are great to work with and can offer you a variety of products from numerous lenders, they lack one of the most important components in a mortgage transaction—control. As a result their time to close can be as long as 60 to 90 days.

Mortgage brokers are dependant on the lender to whom they broker the loan to perform yet, they have very little control over the process. Once the loan is submitted, it is out of their hands. Underwriting turn times can be significant when using a broker and if there are issues with the file, it may leave very little time for your broker to find an alternative.

Using a mortgage banker may prove to be a better option. Mortgage bankers, also referred to as direct lenders, control the process from start to finish. The Loan Officer is an employee of the bank as are the processor, underwriter and closer/funder. With this level of control, your loan officer knows exactly where the file is at all times and can intervene along the way if there are any issues that arise.

Most mortgage bankers can easily close loans in 30 days. Some banks have ability to close loans in 7 to 10 business days if the loan is fully documented.

If you are concerned with meeting your deadline and you are obtaining an FHA loan, you may want to seek out a mortgage banker. Their pricing will be just as competitive and your Loan Officer will have better control over your transaction.

Hope this helps.

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  • June 24 2009
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No different than a conventional loan and will vary lender to lender based on the lenders capacity and current volume.
  • June 23 2009
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That's a bit long by our standards.  But as someone else stated, some big banks and lenders are both slow and way behind.You didn't say whether you are buying or refinancing.  If you are refinancing and your current loan is FHA, it is to your $$$$ advantage to close near the end of the month. 
  • June 23 2009
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There's lenders that are now working on 48 hour turn arounds. You didn't mention on how long your rate lock is or if you have one. If you changed brokers you would be working with current rates. ... Best wishes, Rudi
  • June 23 2009
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Underwriting turn times are taking longer than normal right now.  With low rates also came large volume. 

Has the appraiser been out to inspect the property yet?  Make sure you know what day your lock expires if your loan is locked. 
  • June 23 2009
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Loan approval and closing should be about 30 days or less, 45 would be considered a long time.   Some large bank lenders are taking close to 90 days or more.  Keep the pressure on your loan agent.
  • June 22 2009
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