How to Get My Home HUD Approved

The Department of Housing and Urban Development (HUD) controls the Federal Housing Authority (FHA). The FHA insures certain mortgages. FHA-insured mortgages are safe for lenders. If a lender has an FHA-mortgage fall into foreclosure, the lender is paid the outstanding balance by HUD, and then the house becomes property of the federal government. To get your home HUD approved, you'll need an FHA-insured mortgage--either through a refinance or a purchase mortgage.

Step 1

Review your existing mortgage paperwork, if you're currently a homeowner. If your paperwork has the FHA insignia on any documents, your mortgage is already insured by the Department of Housing and Urban Development. Or, contact your lender and simply ask if they are FHA-approved.

Step 2

Apply for a new purchase mortgage or refinance at an FHA-approved lender. You'll need to provide all demographic information--address, Social Security number, ethnicity and race, date of birth, and previous addresses--as well as income information.

Step 3

Provide your lender with the following documents: W2s for the last two years, at least three consecutive pay stubs, all existing mortgage paperwork and a current mortgage statement (for current homeowners applying for a refinance), a copy of your homeowners insurance policy, and your tax returns for the previous year.

Step 4

Review the mortgage offer from your FHA lender. Make sure the terms of the loan meet your financial goals. If you are applying for a refinance to get FHA insurance, make sure the new mortgage terms are as favorable or more favorable than those of your current mortgage.

Step 5

Close the loan with an attorney. Most FHA mortgage closings offer customers a three-day rescission period during which you can cancel the loan. After the rescission period expires your mortgage is funded and recorded. You are now insured and approved by HUD.