The Federal Housing Administration (FHA) and Fannie Mae (FNMA ), or Freddie Mac, are government-based mortgage programs. An FHA-backed loan allows a home buyer to purchase the home with a smaller down payment than other types of loans and, oftentimes, at a lower interest rate. FHA-backed loans permit buyers to put down as little as 3.5%, as opposed to the typically required 20%. Lower down payments tend to attract many first-time home buyers.
Unfortunately, sometimes the answers on the questionnaire don't satisfy the mortgage underwriter. These answers are factual and cannot be changed.
What is the disclosure information that causes a loan to be denied?
The HOA does not have an obligation to fulfill the requirements for underwriters to approve these loans – those requirements tend to be much stricter than conventional loans and they request more detailed disclosure from the HOA.
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