HUD Offers Free FHA Lender Locator Tool
It probably surprises people everyday, but nope — not all lenders originate FHA mortgages.
Given that FHA loans make up a big percentage of the marketplace this omission may seem odd, but in fact it makes much sense: To be an FHA-approved lender you need to meet certain capital requirements and other standards. As well, you need to operate at a particular level — not good news for the more than 270 FHA lenders dumped by HUD during 2009.
So where do you find local FHA lenders? Just go to the FHA Lender Locator Tool.
The FHA Lender Locator Tool is simply a database of all FHA lenders nationwide. You can search according to the following criteria:
- Lender Name.
- City.
- County.
- State.
- ZIP Code within a radius of 1 to 100 miles:
Next you can winnow down the list by looking for the specific FHA services offered by local lenders. Some of the options include:
- Title I — Property Improvement Loans — Title I home improvement loans, says HUD, “are typically offered as 2nd mortgage loans and are available up to $25,000. Loans for purchase of a manufactured home are available up to $48,600 for the home only and $64,800 for the home and lot combined.”
- Title 11 Mortgages — HUD says “a title II loan is a FHA-insured 1st mortgage loan that a borrower can use to help purchase a home as a primary residence. Title II loans are available under a number of programs, including the popular Section 203(b) program which many first-time buyers use to buy a new or existing one-to-four-family home; the Section 203(k) program which allows borrowers to purchase or refinance and rehabilitate their residence if the home is a least one year old; and the Section 234(c) program for borrowers interested in purchasing a condominium residence.”
- Single-Family Servicer-Originator only — 1 to 4 units.
- Multi-Family Servicer-Originator only.
- Both Single-Family and Multi-Family Servicer-Originator.
- Reverse Mortgages (HECMs) — Limits list to lenders who have done an FHA-backed reverse mortgage within the past 12 months.
- Rehabilitation Loans (203K) — Limits list to lenders who have done a 203(k) within the past 12 months.
The easy way to use the FHA Lender Locator Tool is just to put in your ZIP code and then adjust the miles feature. If you get a large number of lenders, then try again by limiting your search to single-family loans, reverse mortgages, etc.
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