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In order to apply for an FHA home loan, you must complete and sign the Uniform Residential Loan Application (URLA). This document is also known as “Fannie Mae Form 1003.”

It’s the first in a series of documents you will have to provide. For the remainder of this article, I will refer to it simply as the FHA loan application.

You can find this form online with a quick Google search. We have also published a sample application form on our website, for your convenience. Click here to view the full PDF document.

The FHA Loan Application, By the Numbers

There are eight primary parts of the FHA loan application. Here’s an overview of what you’ll find in each part:

- Part 1 of the application covers the type of mortgage you are using, the amount of the loan, the interest rate the lender has assigned, the number of months in the term, and whether it is a fixed or adjustable-rate mortgage loan.

- Part 2 of the application includes information relating to the home being purchased. You will need to provide the address, a legal description of the property, the year it was built, and similar information. Also in part 2, you must indicate whether your FHA loan is being used for purchase, refinancing, or construction. You will also check a box to indicate whether the home will be your primary residence, secondary residence, or an investment property.

- Part 3 of the FHA loan application includes information about the borrower. You’ll provide such standard information as your name, Social Security number, phone number, date of birth, marital status, and your present address. If you have a co-borrower on the loan, such as a spouse or relative, he or she must provide all the same information.

- Part 4 asks for employment information. Again, this is for the borrower as well as the co-borrower (if applicable). The borrower and co-borrower must provide details about their current employment, including name and address of employer, number of years at the job, current position or title, and monthly income. The FHA loan application offers space for your current employer, as well as your last two employers. The lender will probably require you to fill in as much information as possible, relating to previous jobs.

- Part 5 of the FHA loan application is where you disclose your current income. It also asks for information regarding your housing expenses. Lenders use this information to compare your monthly income to your monthly housing costs. On the income side, you (and the co-borrower) will be asked for base income, over time, commissions and bonuses, and other forms of income such as stock dividends or rental income. For housing expenses, you must provide your current rent or mortgage payment, as well as the mortgage payment you will incur with the new loan. You must also provide the amount/cost of homeowners insurance, property taxes, mortgage insurance, and HOA dues if applicable.

- Part 6 of the FHA loan application pertains to your assets and liabilities. In this context, assets can refer to money you have in checking accounts, savings, stocks and bonds, or other forms of investment. If you own your own business, you can enter the value of that as well. You can also provide the value of any real estate property you own, as well as your car (if it is owned outright). Your liabilities are basically your debts. Where FHA loans are concerned, liabilities include credit cards, car loans, mortgages, child sport, alimony, or any other recurring expenses you pay each month. This information, along with the income data provided in part 5, is used to calculate your debt-to-income ratio, or DTI.

- Part 7 of the FHA loan application includes details of the real estate transaction. You must provide the purchase price of the home you are buying, any improvements or repairs that are needed, estimated closing costs and other prepaid items (such as mortgage points). You, or your lender, must then add up the total costs associated with the real estate transaction.

- Part 8 of the loan application is a list of simple ‘yes’ or ‘no’ declarations. Most of these pertain to legal issues you may have had in the past. For instance, you must declare if there are any outstanding legal judgments filed against you. You must also declare any bankruptcies or foreclosures that have occurred in the past seven years, including any deed in lieu of foreclosures. If you are currently involved in a lawsuit, you must disclose that as well.

This covers the key areas of the FHA loan application, also known as the Uniform Residential Loan Application (URLA), or Fannie Mae Form 1003.

Completing this document is only a small part of the FHA application process. You will also have to provide a wide variety of documents relating to your financial situation. This will include bank statements, tax records, credit reports, and other documents that show your income, assets and debts. We will cover some of these documentation requirements in part 2 of this article.

References: For more information on the application process, refer to HUD Handbook 4155.1