How to Become an FHA-Approved Lender

Get started with FHA-insured mortgage products as a new FHA-approved lender or recertify your current approved status. The FHA lender approval requirements vary for different levels and types of lender participation.

The first step is to obtain an application package. Select one of the following:

• Title II Lender Application Package
  (for home purchases, refinances and reverse mortgages)
• Title I Lender Application Package
  (for home improvement loans)

 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.