How to Become a HUD-Approved Lender

Information by State  Esta página en español  Print version   Did You Know? YOU CAN SUBSCRIBE to the Single Family Housing email list. You will get frequent updates to the HOC Reference Guide, training and event announcements, mortgagee letters and notices about your Single Family mortgage business.

FHA Lender Approval Types

Nonsupervised Loan Correspondent: This is the only type of approval mortgage brokers can apply for and allows them to originate Title II single family loans and/or Title I loans. Correspondent lenders and mortgage lenders who only want to originate should apply for this type of approval.

Nonsupervised Mortgagee: Correspondent lenders and mortgage lenders should apply for this type of approval if they want to do any of the following lender functions in addition to origination: underwriting, servicing and owning any type of FHA insured loan.

Supervised Loan Correspondent: Banks, savings banks and credit unions should apply for this type of approval if they only want to originate Title II single family loans and/or Title I loans.

Supervised Mortgagee: Banks, savings banks and credit unions should apply for this type of approval if they want to do any of the following lender functions in addition to origination: underwriting, servicing and owning any type of FHA insured loan.

Government Mortgagee: Federal, State and local government agencies should apply for this type of approval if they want to do any of the following lender functions: origination, underwriting, servicing and owning any type of FHA insured loan.

Investing Mortgagee: Any entity that only wants to own FHA insured loans should apply for this type of approval.

All approval types, except an investing mortgagee, can fund FHA loans.

The requirements for each type of FHA lender approval are at:
FHA lender approval requirements.

FHA Lender Application Packages are at:
Title I Lender Application Package
Title II Lender Application Package

Please visit HUD's comprehensive Lenders Page for more links.

Comments and Questions