Over the past few years, FHA compliance has gained lots of popularity. In fact, nowadays, about 20 percent of the new house purchases are through FHA. Since there is an increase in the volume of FHA compliance, more and more lenders, from all over the world, are becoming approved to FHA. However, it is important to note that FHA process as well as paperwork can be quite confusing and overwhelming especially to those companies which work on small scale. In order to help the lenders to understand the guidelines, this article provide some of the FHAâEUR~s approval requirements. These include:

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  Organization requirements: For the purpose of reducing the risk, FHA has limited its approval to well-established as well as experienced organizations. The officer, who is in charge of the operations of FHA must have minimum of 3 years of mortgaging experience. Apart from this, in order to have FHA approval, any organization canâEUR(TM)t be sole proprietorship. Chartered financial institutions, LLCâEUR(TM)s, partnerships, corporations and government agencies are acceptable. At the same time, organizations, which are FHA approved, should have minimum 2 full time employees as well as one commercial office location.
  


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  Paperwork: Each of the FHA lenders should fill the HUD 11701 application. Depending upon the type of FHA approval, FHA also needs some of the letters as well as other documents. For instance, if any broker wants to become FHA approved, then he should submit funding or sponsor letter, while the lenders require a funding program. In order to see the required documents as listed by FHA, you can visit the HUDâEUR(TM)s website.
  


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  Finances: Apart from Government Mortgagee, all the FHA approval types have to pay the application fee of $1,000. In addition, lenders have to submit financial statements along with the application. It is also essential that financial statement of the lender must show minimum of $63,000 net worth having 20 percent liquid assets.
  


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  Quality control plan: Last, but not the least, FHA approval requires the organizations to submit quality control plan. This step mitigates all the frauds as well as errors. Fannie Mae compliance also requires its lenders to have good as well as active quality control plan. The reason behind this is that quality control helps in ensuring that loans are of superior quality and fulfill all the laws and regulations. Thus, quality control plan of Fannie Mae compliance helps in preventing unnecessary errors as well as frauds.