What is a FHA Direct Lender? I thought this question deserved an answer, as there seems to be a belief that the FHA (Federal Housing Administration) underwrites and approves FHA Loans. Let's break this down. FHA (Federal Housing Administration) is a department supervised by HUD (Housing and Urban Development). FHA Does not make loans. FHA insures loans made by private lenders. FHA does not underwrite, approve, or fund loans. Private lenders make, underwrite, and fund FHA Loans per the guidelines that FHA sets for us, then sends them to FHA after the loan is complete for certification of the eligibility for FHA Insurance.
A Direct Lender is a Lender that originates, underwrites, and funds loans in their own name with their own monies. The loans may be sold at a later time (weeks or years). Both small mortgage banks and the big banks practice this method. Very few banks hold loans for their duration.
An FHA Direct Lender is not approving your loan direct with FHA, or representing FHA. They originate, underwrite and fund FHA Loans per FHA guidelines as a Direct lender, and then submit to FHA for certification of the FHA Insurance.
It is to your advantage as a consumer or Realtor to work with a FHA Direct Lender vs a broker, as we have more experience in writing quality FHA Loans, can work faster than a broker, and offer competitive terms.
VanDyk Mortgage is a Direct Lender offering FHA Loans, VA Loans, FHA Jumbo Loans, VA Jumbo Loans, Conforming loans, and Jumbo Loans. We service California & Washington, including San Diego, Seattle, San Francisco, San Jose, Los Angeles, and all parts in between.