Question by Zenon M: How do I become a FHA Mortgage Broker in Illinois?
Best answer:
Answer by ogrendle
There is no more FHA it is now USDA Rural and Urban Development. Check with mortgage brokers in your area and get updated. Using outdated terms is not a good sign. Know what you are talking about.
Know better? Leave your own answer in the comments!
Umm, yes, there is still FHA loans. No clue what the other guy was talking about. The Federal Housing Administration still exists, as a subsidiary of HUD (Housing and Urban Development). Rural Development is managed by the USDA.
Assuming you’re already a licensed mortgage broker in IL, your first step is to call one of your primary investors who offers FHA loans, and find out what the steps are for them to sponsor you to originate FHA loans.
Being an FHA Direct-Endorsed lender is a huge process with a high networth requirement, your own underwriters, etc… You don’t need that, you just want to broker the loans. So you need someone who is FHA DE, like your main investor banks, to be your sponsor.
FHA historically required a minimum $ 25K networth for the business, even to broker loans. I believe they just changed that, or the change is coming, to open up more brokers to be able to sell FHA loans. You will still have to subject up to 10% of your files for audit, at your expense though, if you get FHA approval.
Talk to your favorite investor rep about it. And if you don’t already have one, you’re 10 steps further than you should be.