FHA has not accepted my loan for FHA insurance post closing

[Andrew Martin]

Hi Everyone,

I recently purchased a home with an FHA mortgage, after closing I received a letter from my lender that the FHA has not accepted my loan for FHA insurance and now my loan is no longer an FHA loan.

How is this possible? I am in any danger of the lender calling in the mortgage since they will have a harder time selling it off without the FHA insurance?

Any advice would be appreciated.

[Rod Hanks]

Quote from @Andrew Martin:

Hi Everyone,

I recently purchased a home with an FHA mortgage, after closing I received a letter from my lender that the FHA has not accepted my loan for FHA insurance and now my loan is no longer an FHA loan.

How is this possible? I am in any danger of the lender calling in the mortgage since they will have a harder time selling it off without the FHA insurance?

Any advice would be appreciated.

In all my years in business I have never heard of that. It makes me think that some kind of fraud was detected post closing. But I’m just guessing. I would definitely get on the phone with the bank or mortgage broker who originated the loan and see what’s going on.

[Chris Seveney]

@Andrew Martin

The mortgage broker should be able to advise what happened

It could be due to how it was originated, missing docs or something like a borrower took out another loan between application and closing

These are usually called scratch and debt loans