Good answer Matt

Peggy please elaborate a little bit more as to what your question is or the problem you are having and maybe we can be more specific in our answers!

Good morning Peggy. First just to get things in proper perspective, FHA does not preapprove anyone...your loan officer does. There are guidelines that FHA imposes and there are additional guidelines the actual banks impose. If I knew the reason you were denied I may be able to help you better. It is our job as loan officers to look at a file and determine if it can be done. The initial information we get verbally from a borrower and a credit report is used to determine that preapproval. However if some of the information isn't correct or different in any way that could effect a preapproval status. I run into this alot, but it is my job to also try to fix the problem, or find compensating factors that will support a loan through FHA financing. The Banks from one to another are different in many ways. One states a 580 credit score is needed and yet another states a 660 credit score is needed. SOme banks have common sense underwriting and some banks are too institutional when they underwrite files. A denial at one bank doesn't neccessarily mean the loan can't be done. Depending on why it was denied, the loan officer should look at this and see if there is a different solution. It is important in today's market to package a deal so the underwriter wants to say yes. What this means is creating a papertrail of why this person should be approved...for example: great rent history of more than 24 months, timely insurance payments for more than 24 months, timely utility payments for more than 24 months, etc. There can never be too many good characteristics of a borrower, especially if there may be a bad one. Loans are not easy by any means, we work much harder today than we did a few years ago. FHA used to be the hard loan to do, now it is one of the easiest compared to recent changes in financing in other types of mortgages. And these banks are on the hook for everything. The banks are making their own rules about who they want to finance...here are some examples:
FHA Loans are not suppose to be credit score driven, they are suppose to be based on character of the borrower.
FHA does not require reserves (money) after closing the loan, but banks want to see reserves.
FHA allows gift funds to be used for the down payment, but banks consider gift funds to be bad because the borrower has none of their own money in the transaction making it easier to walk away if things go bad financially.
Those are just a few examples. I would find out what the actual reason was for the denial and maybe look for another loan officer to help you if your present one can not.
I wish you the best of luck.
Matt

Typically, a loan officer will give a preapproal based on information that is provided. The final approval will be based on the verification of all the information you provided and other information that may come up. There is also the condition of the property which will come into play. It's difficult to answer this question accurately out of context.

That's actually pretty common, but do you have more information on why you were denied?