Dispelling Common Myths About Participating with FHA

1. Myth: Takes more time processing.
   Truth:
   • Takes no more time than a conventional loan.
   • Adds no additional or special requirements.
   • Uses TOTAL Scorecard/AUS approval allowing you to complete a loan in the amount of time it takes to get the appraisal.
   
   
2. Myth: More paperwork is involved.
   Truth: Requires only one additional document signed by the borrower.
   
   
3. Myth: Higher costs are inevitable.
   Truth:
   • Rates are competitive with the best in the industry.
   • Lender insurance programs eliminate shipping and reshipping costs.
   • Streamlined loan process.
   
   
4. Myth: The borrower can't pay certain loan costs or fees.
   Truth:
   • FHA eliminated non-allowable closing cost fee schedule (ML 06-04, 06-07) .
   • The borrower, or any interested party to the loan, may pay all reasonable and customary charges.
   
   
5. Myth: FHA is too restrictive.
   Truth:
   • FHA provides guidelines for underwriting; same as industry investors.
   • FHA allows for manual underwriting for all loan programs; some in the industry will not approve a mortgage loan without an automated approval.
   • Automated Underwriting Systems approval is not required - allows for hands-on, common sense judgments.