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UpdatedAugust 22, 2026ReviewedAugust 23, 2026Where our FHA figures come from
Loan underwriter reviewing FHA employment verification and asset documents against Handbook 4000.1 Update 18 checklists
Underwriting operations

FHA underwriting checklists for Handbook 4000.1 Update 18.

Exactly what an FHA underwriter looks for on employment and income verification, down payment assistance and HECM files — written out step by step so you know which documents to gather, what can hold a file up, and what changed in the August 12, 2026 HUD handbook update.

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3.5%
Min. down payment
580
Min. FICO score
$1,249,125
2026 high-cost ceiling
Quick answer

What does FHA underwriting verify under Handbook 4000.1 Update 18?

FHA underwriting under Handbook 4000.1 Update 18 verifies employment three distinct ways — a written VOE returned employer-to-lender, an electronic VOE from a payroll-sourced vendor, and a separate reverification shortly before funding. Down payment assistance is documented by structure, and HECM files must submit the most recent LESA analysis plus the borrower notice.

What this means for your mortgage

If your employment, assistance funds, and — for a HECM — your LESA paperwork are handled as separate tracked steps, nothing surfaces as a surprise condition in the last week before closing.

Reviewed by the licensed mortgage team at Simply Approved Mortgages · Last verified August 23, 2026 against HUD Handbook 4000.1

See the full FHA requirements
TL;DR

Update 18 underwriting checklist: key takeaways

  • Written VOE, electronic VOE, and reverification are three separate items — one does not satisfy another
  • The same definitions apply to TOTAL Scorecard and manually underwritten files
  • A written VOE must travel employer-to-lender with no borrower handling
  • FHLB Homeownership Set-Aside funds may be a grant or secondary financing — confirm the structure before disclosing
  • HECM insurance submission requires the most recent LESA analysis and the borrower notice
  • Reverification windows (commonly 10 days) are lender overlays, not HUD rules

Verified against HUD Handbook 4000.1 Update 18 — August 12, 2026

Reviewed by the Simply Approved Mortgages underwriting desk — Licensed mortgage originators (NMLS) — Colorado & Florida. Items tagged Update 18 are new or newly defined in the August 12, 2026 release.

FHA employment verification (written VOE, electronic VOE, reverification)

Update 18 defines written VOE, electronic VOE, and reverification of employment as three distinct items, and applies the same definitions to TOTAL Scorecard and manually underwritten files. Work them as separate tasks — a completed original verification does not satisfy the reverification step.

  • Identify the verification path on the file: written VOE, electronic VOE, or pay stubs plus W-2s

    ApplicationLoan officerUpdate 18

    Record the chosen path in the file notes so processing does not duplicate work.

  • Order the written VOE so it goes employer-to-lender with no borrower handling

    Document collectionProcessorUpdate 18

    Borrower-delivered forms do not satisfy the written VOE definition.

  • Confirm the written VOE shows dates of employment, current position, and qualifying income

    Document collectionProcessorUpdate 18

  • When a written VOE replaces pay stubs and W-2s, still collect the most recent pay stub

    Document collectionProcessorUpdate 18

  • For electronic VOE, use an approved third-party vendor sourcing employer payroll records

    Document collectionProcessorUpdate 18

    Vendor acceptance is an investor/lender overlay, not a HUD restriction.

  • Save the electronic VOE report showing vendor name, access date, and period covered

    Document collectionProcessorUpdate 18

  • Do not rely on electronic VOE alone for self-employed, commission, or gig income

    UnderwritingUnderwriter

    Lender overlay — document those income types the traditional way.

  • Document a two-year employment history and written explanations for every gap

    Document collectionProcessor

  • Complete reverification of employment close to the note date as a separate step

    Pre-closingProcessorUpdate 18

    Reverification confirms employment continues; it is not a re-underwrite of income.

  • Log the reverification source, person or system contacted, and contact date

    Pre-closingProcessorUpdate 18

  • Reverify self-employed borrowers by confirming the business is still operating

    Pre-closingProcessorUpdate 18

  • Repeat reverification if closing is delayed beyond the lender's window (commonly 10 days)

    Pre-closingCloser

    Lender overlay — HUD sets the requirement, the window is the lender's.

  • Ask the borrower at every touchpoint whether employment, pay structure, or leave status has changed

    All stagesLoan officer

DPA and secondary financing (including FHLB Homeownership Set-Aside)

Update 18 clarified that Federal Home Loan Bank Homeownership Set-Aside funds may be structured as a grant or as secondary financing. The structure drives the lien, the CLTV, and the documents — determine it before you disclose.

  • Determine the assistance structure: grant, forgivable second, repayable second, or FHLB Set-Aside

    ApplicationLoan officer

  • For FHLB Set-Aside funds, confirm in writing whether the district structured them as a grant or as secondary financing

    ApplicationLoan officerUpdate 18

    Both structures are permissible under Update 18; the FHLB district and member institution decide.

  • Confirm member-institution access and state licensing before representing any FHLB program to a borrower

    ApplicationLoan officerUpdate 18

  • Document the assistance provider, program name, and funding round or reservation number

    Document collectionProcessor

  • Collect the assistance note and any subordination or retention agreement when structured as secondary financing

    Document collectionProcessorUpdate 18

  • Recalculate CLTV with the second lien included, and confirm the payment is in the DTI

    UnderwritingUnderwriter

  • Verify the household income against the program cap (FHLB Set-Aside is commonly 80% of AMI)

    UnderwritingUnderwriter

  • Confirm homebuyer education is complete and dated within the program's window

    Document collectionProcessor

  • Verify the minimum required investment source is eligible and not funded by a prohibited party

    UnderwritingUnderwriter

  • Confirm lien position and recording instructions with the title company before the closing package goes out

    ClosingCloser

HECM insurance submission and Life Expectancy Set-Aside (LESA)

Update 18 requires the most recent LESA analysis and the related borrower notice in the HECM insurance-submission package. Treat both as closing conditions, not post-closing clean-up.

  • Complete the financial assessment covering income, credit, and property-charge history

    UnderwritingUnderwriter

  • Determine whether a LESA is fully funded, partially funded, or not required, and document the reasoning

    UnderwritingUnderwriter

  • Save the most recent LESA analysis in the file for the insurance-submission package

    Pre-closingProcessorUpdate 18

  • Issue and collect the signed borrower notice explaining the LESA determination

    Pre-closingProcessorUpdate 18

  • Re-run the LESA analysis if the assessment inputs change, and replace the prior version in the file

    Pre-closingUnderwriterUpdate 18

    The submission requires the most recent analysis, not the original one.

  • Confirm the LESA hold-back is reflected in the principal-limit and proceeds figures shown to the borrower

    Pre-closingLoan officer

  • Verify the HUD-approved counseling certificate is in file and still within its validity window

    Document collectionProcessor

  • Confirm two years of property-tax payment history and current hazard insurance are documented

    Document collectionProcessor

  • Assemble the insurance-submission package with the LESA analysis and borrower notice attached

    Post-closingCloserUpdate 18

  • Do not market a HECM product until lender access and state licensing are confirmed

    All stagesLoan officer

Operational reference for licensed originators and processors. HUD rules and lender overlays are labelled separately; overlays vary by lender, investor, and file. Simply Approved Mortgages does not represent that it offers a Federal Home Loan Bank Set-Aside or HECM product until lender access and state licensing are confirmed. Nothing here is a quote, rate lock, offer, or commitment to lend.

Ready to see what you qualify for?

Talk with a licensed FHA broker about your scenario. Licensed in Florida and Colorado.

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How employment gets verified on an FHA file

The order the verification steps run in, from application to funding.

  1. 1

    Choose the verification path

    Written VOE, electronic VOE, or pay stubs plus W-2s — recorded in the file at application.

  2. 2

    Order the verification

    A written VOE goes employer-to-lender directly; an electronic VOE is pulled from a payroll-sourced vendor report.

  3. 3

    Document the details

    Dates of employment, position, and qualifying income, plus the vendor, access date, and period covered on electronic reports.

  4. 4

    Underwrite the income

    Two-year history in the same line of work, with written explanations for every gap.

  5. 5

    Reverify before funding

    A separate confirmation that employment continues, logged with source, contact, and date.

  6. 6

    Repeat if closing slips

    If the closing date moves past the lender's window, reverification runs again before the note is signed.

Which checklist should you work from?

This is a good fit if…

  • Every purchase and refinance file — run the employment-verification checklist from application through funding
  • Any file using down payment assistance, gift-plus-assistance layering, or a recorded second lien
  • HECM files, where the LESA analysis and borrower notice are closing conditions rather than post-closing items
  • Team onboarding — the CSV imports as CRM task templates with owner and stage already assigned

Consider another path if…

  • Consumer self-service — this is an operational reference, not a borrower application guide
  • Investor-specific overlays, which sit on top of these HUD steps and vary by file
  • Servicing and loss-mitigation workflows, which Update 18 addresses separately
  • Any file where an FHLB or HECM product is being marketed before lender access and licensing are confirmed

Update 18 underwriting questions, answered

What changed in HUD Handbook 4000.1 Update 18?
Published August 12, 2026, it added definitions for written VOE, electronic VOE, and reverification of employment; clarified that FHLB Homeownership Set-Aside funds may be a grant or secondary financing; and required the most recent LESA analysis plus borrower notice in HECM insurance submissions. Servicing and foreclosure-timeline changes were also incorporated.
Does a written VOE replace pay stubs and W-2s?
It can, provided the lender also obtains your most recent pay stub. Many lenders still collect 30 days of stubs and two years of W-2s anyway, because their investors ask for both — that is an overlay, not a HUD requirement.
Is reverification the same as the original verification?
No. Reverification is a separate, later step that confirms employment continues close to the note date. The lender records the source, the person or system contacted, and the date. It does not re-underwrite your income.
What is a Life Expectancy Set-Aside on a HECM?
A LESA is money held back from HECM proceeds to pay property taxes and insurance. It can be fully funded, partially funded, or not required based on the financial assessment. Update 18 requires the most recent analysis and the borrower notice explaining it in the insurance-submission package.
Can an FHLB set-aside be layered on an FHA loan?
Yes, in either structure FHA permits — grant or secondary financing — as long as the originating institution is an enrolled FHLB member. Availability depends on district funding rounds and member access, which is why the structure has to be confirmed in writing before disclosures go out.
Why does underwriting ask for a letter of explanation?
To document the story behind a data point — a gap in employment, a large deposit, an address discrepancy — so the file stands on its own for audit.
How long do underwriting conditions take to clear?
It depends on how quickly documents come back and on lender queue times; no broker controls that calendar.
What is 'conditional approval'?
An underwriting decision to approve subject to specified documents or events. It is not a final approval or a guarantee of closing.
Do I need to explain every deposit?
Deposits that are large relative to your income, or that are not clearly payroll, generally require sourcing.
Can I open a credit card before closing?
Avoid it. New debt triggers re-underwriting and can change your ratios days before closing.
What is a quality control audit?
A post-close review lenders must perform on a sample of FHA files. It is why documentation standards are strict even on strong files.
Does an automated approval mean I'm done?
No. The automated finding lists the documentation the underwriter must still verify, and the file must match the data entered.
What is the most common cause of delays?
Missing or stale documentation, unsourced deposits, and appraisal repair issues — in roughly that order.
Included with your FHA estimate

Get your FHA Pre-Approval Summary.

Complete the short form and we send back a full FHA breakdown: your county loan limit, the minimum FHA down payment, financed upfront MIP, monthly mortgage insurance, and an estimated payment — plus whether down payment assistance can cover your cash to close.

  • Maximum FHA loan amount for your county
  • Minimum FHA down payment and cash-to-close estimate
  • Upfront and annual MIP included
  • Estimated monthly payment with taxes and insurance
Get my FHA estimate

Takes about 3 minutes · No obligation · Summary emailed and shown on screen

Illustration only, generated from the information you enter. Not a Loan Estimate, pre-qualification, commitment to lend, or approval. Subject to appraisal, credit and income review, FHA guidelines, and final lender approval. Equal Housing Opportunity.

FHA Estimate Summary
Purchase price
$385,000
Down payment (3.5%)
$13,475
Base loan amount
$371,525
Financed UFMIP (1.75%)
$6,502
Est. monthly payment
Shown in your summary

Sample figures for illustration only — not a quote, rate lock, offer of credit or commitment to lend. Simply Approved Mortgages · NMLS #2620881 · Equal Housing Opportunity

Weighing it up

Pros and cons of FHA financing

The trade-offs below are specific to FHA financing. Reviewed August 23, 2026 against HUD Handbook 4000.1 and the current HUD county loan limit file.

What works in your favor

  • 3.5% down from a 580 FICO, with 100% of the down payment giftable.
  • Seller contributions of up to 6% of the sale price toward closing costs.
  • No income caps, and higher DTI is possible with documented compensating factors.

What to plan around

  • Annual mortgage insurance for the life of the loan at 3.5% down.
  • County loan limits cap the financed amount, not the purchase price.
  • HUD minimum property standards apply at appraisal.
Worked example

The FHA numbers behind this page

A $425,000 example shows the cash and loan structure FHA produces before pricing is added.

The FHA numbers behind this page
Purchase price$425,000
FHA down payment at 3.5%$14,875
Base loan amount$410,125
Upfront MIP at 1.75%, financed$7,177
Conventional 20% down for comparison$85,000

Illustration only — not a quote, rate lock, offer or commitment to lend. Subject to lender underwriting and approval.

Document checklist

What documents you need for FHA financing

This is the set an FHA underwriter typically asks for. Having it ready before you write an offer is the single biggest difference between a two-week and a six-week file.

Identity and residency

  • Government-issued photo ID and Social Security number
  • Two-year residence history with landlord contact where you rented

Assets

  • Two months of statements for every account used for down payment or reserves
  • A signed gift letter plus the donor's source of funds for any gifted money
  • Retirement statements when reserves are drawn from those accounts

Property and credit

  • Fully executed purchase contract with all addenda
  • Homeowners insurance quote, plus flood coverage where required
  • Written explanation for credit events, plus bankruptcy or foreclosure paperwork if applicable
Income documentation

Self-employed vs. W-2 employed: what it means for your FHA loan

Income documentation is where most FHA files slow down, and it depends on how you are paid. FHA does not apply a different credit score, down payment or county limit to self-employed borrowers — it applies a different documentation standard.

FHA documentation differences between W-2 employed and self-employed borrowers
ItemW-2 employedSelf-employed
History requiredTwo-year employment history, with gaps explained. A job change inside the same field is usually fine.Generally two years of self-employment. A shorter history can sometimes be considered when there is documented prior experience in the same line of work.
How income is calculatedBase pay from pay stubs and W-2s. Bonus, overtime and commission generally need a two-year history to be averaged in.Net income from tax returns, averaged and adjusted for allowable add-backs such as depreciation. Write-offs that reduce taxable income also reduce qualifying income.
Documents that open the file30 days of pay stubs, two years of W-2s, and a verification of employment.Two years of personal and business returns, year-to-date P&L and balance sheet, and evidence the business is still operating.
Verification at closingThe employer is re-verified shortly before closing; do not change jobs mid-process without telling your loan officer.Continued existence of the business is re-verified close to closing, typically through a third-party or licensing check.
Most common delayUnexplained gaps, a new job with variable pay, or a VOE the employer never returns.A declining year over year, or a large deduction that removes the very income needed to qualify.
What we suggestGet the VOE moving on day one — it is the item most often outstanding at the end.Have your accountant produce the year-to-date P&L before you shop, so qualifying income is known before you write an offer.

If you are W-2 employed

  • Pay stubs covering the most recent 30 days
  • W-2 forms for the last two years
  • A verification of employment; HUD Handbook 4000.1 Update 18 tightened the written and electronic VOE rules, so expect the employer record to be verified directly
  • Documentation of bonus, overtime or commission income if you want it counted

If you are self-employed

  • Two years of personal federal tax returns, all schedules
  • Two years of business returns for a partnership, S-corp or C-corp, plus K-1s
  • A year-to-date profit and loss statement and balance sheet
  • Business license, CPA letter or equivalent evidence the business is active

General FHA documentation guidance per HUD Handbook 4000.1, including Update 18 changes to written and electronic verification of employment. Requirements vary by borrower, property, lender and program, and all loans are subject to lender underwriting and approval. Sources: HUD Handbook 4000.1

Run the numbers for your county

FHA payment, affordability, closing cost and refinance calculators for the United States

Prefilled with the 2026 HUD reference median of $415,000 for the United States, a 0.90% effective property tax rate and a directional $2,300 annual homeowners premium. Change any input — the interest rate is your own assumption, not an offer.

$
%

FHA minimum is 3.5% at 580+ credit.

%

Your assumption — not a quoted rate.

yrs
%
$
Estimated total monthly payment
$3,262
Principal & interest
$2,576
FHA annual MIP
$184
Property tax
$311
Homeowners insurance
$192
Down payment
$14,525
Loan amount incl. financed UFMIP
$407,483
See Today's Rates

Figures are illustrations based on the values you entered — not an offer, rate lock, or commitment to lend. Emailing your scenario sends it to a licensed loan officer in Florida or Colorado.

Estimates for general educational purposes only. Interest rates shown are assumptions you enter, not quoted rates, and nothing here is a rate lock, APR, payment quote, pre-approval, offer or commitment to lend. Results exclude HOA dues, flood or wind policies, mortgage insurance changes, points and lender-specific fees. FHA upfront MIP of 1.75% and annual MIP of 0.55% follow HUD Mortgagee Letter 2023-05 for a 30-year term at 3.5% down. Property tax and insurance inputs are directional state references, not a parcel-level bill. Eligibility, terms, conditions and availability vary by borrower, property, lender, loan program and state. All loans are subject to lender underwriting and approval. Equal Housing Opportunity. Sources: HUD Mortgagee Letter 2023-05 (MIP) · HUD Mortgagee Letter 2025-23 (2026 loan limits) · U.S. Census Bureau ACS · NAIC homeowners insurance · CFPB Closing Disclosure

Taxes, insurance and local expenses

What owning actually costs in the United States

Mortgage pricing moves the payment a little. Property tax and insurance move it a lot, and they are entirely local. These figures are built from the 2026 HUD county dataset for the United States and national tax and settlement conventions, reviewed August 23, 2026.

Estimated ownership costs in the United States on a $415,000 home
CostEstimateHow it works here
Property tax$311 / moAbout 0.90% effective on $415,000 — roughly $3,735 a year. Millage is set locally, so verify the parcel's actual bill.
Homeowners insurance$192 / moDirectional $2,300 a year for a single-family owner policy in the U.S.. Wind, hail and flood may be separate policies.
FHA annual mortgage insurance$184 / mo0.55% of the $400,475 base loan at 3.5% down, 30-year term, per HUD Mortgagee Letter 2023-05.
FHA upfront MIP$7,0081.75% of the base loan, normally financed into the $407,483 total loan amount rather than paid in cash.
State transfer / documentary taxVariesTransfer, deed, recordation and mortgage taxes are set state by state — several states charge none at all.
Settlement conventionTitle/escrow stateA title or escrow company customarily conducts the closing and issues the policy.

The expense buyers here miss most

Property tax and homeowners insurance vary far more between two states than mortgage pricing does — always re-price the escrow on the exact county before you write an offer.

How this affects the FHA file

Taxes and insurance are part of the qualifying payment, so a $503 escrow in your county consumes debt-to-income capacity before a single dollar of principal and interest is counted. Underwriting uses the post-closing figures, not the seller's current bill.

Estimates for general education only — not a quote, rate, APR, pre-approval, offer or commitment to lend. Property tax rates are effective rates derived from U.S. Census Bureau ACS data; actual millage is set by county, city, school and special districts. Insurance figures are directional annual premiums, not quotes. Transfer, deed, recordation and mortgage taxes summarise state-level statutes; counties and municipalities frequently add their own. Eligibility, terms, conditions and availability vary by borrower, property, lender, loan program and state, and all loans are subject to lender underwriting and approval. Sources: U.S. Census Bureau — ACS property tax data · NAIC Homeowners Insurance Report · CFPB — understanding closing costs

Simply Approved Mortgages Expert Insight
Lender commentary · Last reviewed August 23, 2026

Documented guidance from a licensed mortgage broker

Simply Approved Mortgages originates FHA loans directly, so the guidance on this page reflects how HUD's published rules apply to files we underwrite and close — not general industry commentary.

Our recommendation

Have your scenario reviewed against your actual documents before deciding.

Simply Approved Mortgages · licensed mortgage broker · NMLS #2620881 · Equal Housing Opportunity
Ask Simply AI

Ask SAM anything about FHA loans in the United States

SAM is the Simply Approved Mortgages AI assistant, grounded in HUD Handbook 4000.1 and the 2026 HUD county limit file. It answers general FHA questions instantly. A licensed loan officer reviews every scenario before any terms are confirmed.

Hi — I'm SAM. Ask me about FHA loan limits, credit, mortgage insurance, down payment assistance or what an underwriter will need from you. General education only: I don't quote rates, and nothing I say is an offer or commitment to lend.

General information only — not advice, a quote, or an offer of credit.

Popular on this page

Talk to a licensed loan officer 877-813-7219

Ask Simply AI provides general educational information about FHA loan programs. It is an automated assistant, may be incomplete or out of date, and does not provide legal, tax or financial advice. Nothing it produces is a rate quote, APR, pre-approval, offer or commitment to lend. Simply Approved Mortgages LLC (NMLS #2620881) arranges residential mortgage loans in Florida and Colorado. Eligibility, terms, conditions and availability vary by borrower, property, lender, loan program and state, and all loans are subject to lender underwriting and approval. Equal Housing Opportunity.

Where to go next

Continue with the FHA topic that matches where you are, or talk to a licensed loan officer about your own numbers.

How FHA loans work

What FHA insurance is and who it fits.

FHA requirements

Credit, income, DTI and property rules.

FHA credit score rules

580 vs 500–579 and what they change.

Down payment & assistance

3.5% minimum, gift funds and DPA options.

Mortgage insurance (MIP)

Upfront and annual MIP, and how long it lasts.

FHA loan limits

County-by-county HUD maximums.

FHA closing costs

What you pay and what a seller can cover.

FHA loan programs

203(b), 203(k), streamline, cash-out and more.

FHA calculators

Payment, affordability, MIP and break-even tools.

First-time buyer guide

Step-by-step from budget to closing.

Start My Approval Contact a licensed loan officer Submitting a request is not an application, approval or commitment to lend.
Down Payment Assistance

The FHA DPA Program

Short on cash to close? Ask about the FHA DPA, offered through Simply Approved Mortgages: 2.5%, 3.5%, or 5% of your loan amount toward your down payment and closing costs, structured as a 10-year repayable second lien at your first-mortgage rate + 2%. FICO 580+, primary residence only — it's an option on every loan program on this site.

How it works

Three tiers. Real money toward your home.

  • 2.5% / 3.5% / 5% of the lesser of purchase price or appraised value
  • Pairs with FHA, Conventional, VA, and USDA first mortgages
  • 10-year repayable second lien — no silent forgivable strings
  • Available to FICO 580+ primary-residence buyers
Full DPA program details
Not available in: New York, Washington, U.S. Virgin Islands, Guam, Northern Mariana Islands, and American Samoa. All loans subject to underwriting approval and program guidelines.
Amount calculator & eligibility checker

See how much assistance you may qualify for

Enter a purchase price, pick an assistance tier, and confirm property and residency. Results are illustrative — not a quote or commitment.

Simply Approved Mortgages DPA

DPA amount calculator & eligibility checker

Estimate 3.5% assistance on the lesser of price or appraisal, layered over a 30-year fixed FHA first mortgage.

Estimated DPA
$14,000
3.5% of $400,000
2nd-lien P&I
$174
10-yr · 8.500%

Amount calculator

Assistance tier
Lesser of price or appraisal
$400,000
DPA at 3.5%
$14,000
2nd-lien term
10-year fixed, repayable
2nd-lien rate
8.500%
Monthly P&I
$174/mo

Illustrative only — not a quote, lock, offer, or commitment to lend. Binding figures appear only on your Loan Estimate and Closing Disclosure.

Eligibility checker

Documentable qualifying income?

Willing to complete homebuyer education before closing?

Property in NY, WA, USVI, Guam, MP, or AS?

Answer each question above to see your preliminary result.

See Today's Rates

Figures are illustrations based on the values you entered — not an offer, rate lock, or commitment to lend. Emailing your scenario sends it to a licensed loan officer in Florida or Colorado.

Preliminary self-check only — no credit pulled. Not a quote, lock, offer, or commitment to lend. Simply Approved Mortgages is not affiliated with HUD, FHA, VA, USDA, FHFA, or any government agency. Equal Housing Opportunity. NMLS# 2620881.

Our pricing philosophy

Transparency. Simplicity. Consumer Choice.

At Simply Approved Mortgages, we believe borrowers deserve clear information, professional guidance, and access to competitive mortgage solutions.

Our company is built around a straightforward philosophy: provide transparent mortgage guidance, maintain a consistent compensation structure on most transactions, and help borrowers make informed financing decisions based on their individual needs and goals.

For many mortgage transactions, Simply Approved Mortgages typically operates using a lender-paid compensation structure of approximately 1.50%. Actual compensation may vary based on lender requirements, loan program, state regulations, loan amount, and other transaction-specific factors.

We believe transparency helps consumers better understand the mortgage process and make informed decisions when comparing financing options.

Our promise

Mortgage financing should be understandable, transparent, and focused on helping consumers make informed decisions.

Our goal isn't to maximize compensation per transaction. Our goal is to build lifelong client relationships through transparency, service, and competitive mortgage solutions.

Why compensation transparency matters

Understanding all aspects of the financing process

Many borrowers spend significant time comparing interest rates, but may be less familiar with how mortgage companies and loan originators are compensated.

Compensation structures can vary among lenders, mortgage brokers, banks, credit unions, and other mortgage providers. Compensation is only one component of a mortgage transaction and should be evaluated alongside interest rates, APR, lender fees, discount points, closing costs, loan features, and overall loan suitability.

At Simply Approved Mortgages, we believe consumers benefit from understanding all aspects of the financing process before making a decision.

Interactive illustration

See how compensation scales by loan amount

Move the slider to compare a hypothetical 1.50% Simply Approved Mortgages compensation structure with a hypothetical 2.75% used by some other lending options. For educational purposes only.

$400,000
$50,000$2,000,000
Typical market comp at 2.75%$11,000
Simply Approved Mortgages at 1.50%$6,000
Potential closing cost difference
Hypothetical impact on lender compensation only
~$5,000

For illustration only. Figures are hypothetical and not a quote, offer, rate lock, or guarantee of savings. Lender compensation is one component of closing costs; actual loan terms, interest rates, fees, APR, and total costs vary by program, loan amount, credit qualifications, property, occupancy, state, and market conditions.

Illustrative compensation comparison

Comparing a hypothetical 1.50% to a hypothetical 2.75%

The example below compares a hypothetical 1.50% compensation structure used by Simply Approved Mortgages to a hypothetical 2.75% structure used by some other lending options, solely for educational purposes.

Loan AmountSimply Approved Mortgages (1.50%)Other lending options (2.75%)Difference
$250,000$3,750$6,875$3,125
$350,000$5,250$9,625$4,375
$500,000$7,500$13,750$6,250
$750,000$11,250$20,625$9,375
$1,000,000$15,000$27,500$12,500

These examples are illustrative only and are intended to demonstrate how different compensation percentages may produce different compensation amounts based on loan size.

These examples do not represent borrower fees, interest rates, APR, closing costs, loan terms, pricing, or savings, and should not be interpreted as a guarantee that any borrower will receive lower costs or better loan terms.

Our commitment to borrowers

Our goal is to provide

  • Professional mortgage guidance
  • Transparent communication throughout the loan process
  • Access to a broad range of mortgage programs
  • Competitive financing options based on borrower qualifications
  • A streamlined application and approval experience
  • Support for homebuyers, homeowners, and real estate investors
A team-focused approach

Support for every type of borrower

Whether you're purchasing a home, refinancing an existing mortgage, consolidating debt, or financing an investment property, our team is committed to helping you evaluate available options and make informed decisions.

Compare more than just the interest rate

When evaluating mortgage options, borrowers should consider the complete financing package

  • •Interest Rate
  • •Annual Percentage Rate (APR)
  • •Lender Fees
  • •Discount Points
  • •Closing Costs
  • •Loan Features and Flexibility
  • •Prepayment Terms
  • •Product Eligibility Requirements
  • •Customer Service and Support

The most appropriate mortgage solution depends on each borrower's individual financial circumstances, objectives, qualifications, and preferences.

Important Disclosure: Simply Approved Mortgages LLC typically utilizes a lender-paid compensation structure of approximately 1.50% on many mortgage transactions; however, compensation may vary based on lender requirements, loan program, state law, loan amount, borrower qualifications, and other transaction-specific factors. Compensation is only one component of mortgage pricing and does not, by itself, determine interest rates, APR, lender fees, closing costs, loan terms, or overall borrower costs. The information provided on this page is for general educational and informational purposes only and should not be construed as mortgage advice, a commitment to lend, an offer to extend credit, a rate quote, a loan approval, or a guarantee of savings. All mortgage loans are subject to credit approval, underwriting requirements, property approval, and program eligibility guidelines. Borrowers should carefully review all disclosures, including the Loan Estimate and Closing Disclosure, before proceeding with any mortgage transaction. Simply Approved Mortgages LLC • NMLS #2620881 • Equal Housing Opportunity.

Ready when you are

Get pre-qualified in minutes — no obligation.

Talk to a licensed Simply Approved Mortgages loan officer. We'll review your goals, walk through FHA, Conventional, VA, USDA, and DPA options, and give you straight answers — same day.

Start My ApprovalSee Today's Rates

Simply Approved Mortgages • NMLS #2620881 • Licensed in Colorado and Florida

Quick pre-qualification

Share a few details and a licensed loan officer will follow up within one business day. No obligation.

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Simply Approved Mortgages LLC arranges residential mortgage loans in Florida and Colorado only. We ask first so we never collect a mortgage inquiry we are not licensed to act on.

Step 1 of 2 — takes about 30 seconds. Step 2 is optional detail you can skip anytime by calling us.

Simply Approved Mortgages LLC | NMLS #2620881 — a mortgage broker, not a direct lender. Submitting this form is an inquiry only; it is not an application, quote, pre-approval, approval or commitment to lend. All loans are subject to lender underwriting and approval. Equal Housing Opportunity. See our Privacy Notice.

Credit & pre-approval

Why we pull credit for your FHA pre-approval

Every FHA file needs a tri-merge credit report so we can verify your identity, confirm your FICO tier against FHA's 580 / 500 thresholds, and price your rate and mortgage insurance accurately. Cleaner credit typically unlocks a better rate and a stronger pre-approval letter.

Pay for your credit report — SmartPay

Simply Approved Mortgages uses SmartPay to securely collect the credit report fee for your FHA pre-approval. Payment goes directly to the credit vendor — not to us — and unlocks your tri-merge report (Equifax, Experian, TransUnion) so your loan officer can price your file.

  • Secure, PCI-compliant SmartPay checkout
  • Required for a formal FHA pre-approval decision
  • Guided process — your loan officer walks you through each step
Pay for credit report securely

You'll be redirected to our secure SmartPay checkout.

Check your credit first — $1 trial at MyITINCredit

Before you apply, it's smart to know exactly where your credit stands. MyITINCredit offers a $1 trial for 15 days that includes all three credit reports and scores, plus ongoing monitoring so you can catch errors, dispute inaccuracies, and watch for identity theft.

  • See all 3 bureau reports & scores before your lender does
  • Ongoing monitoring alerts you to new accounts or score changes
  • Fix errors early — a higher FICO can lower your FHA rate
Start $1 / 15-day trial

You'll be redirected to myitincredit.com. Third-party service — terms apply.

Credit report fees are paid directly to the credit vendor. Simply Approved Mortgages does not profit from the credit pull. MyITINCredit is an independent third-party service; pricing, terms, and features are set by that provider.

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