FHA and VA loans are an alternative to conventional financing designed for buyers who may not meet traditional loan requirements. Government agencies back FHA and VA mortgages to mitigate lender risk.
Title work for FHA and VA loans needs to be high-quality and cost-effective. This federal backing is not guaranteed. The burden is on the lender to ensure the property qualifies and is free from title issues.
The VA or FHA makes no requirement for borrowers to obtain title insurance. It is up to the lender to determine how to ensure that the title is free from conditions that significantly affect the property and its marketability.
The FHA will not guarantee a loan with any of the following title defects:
Also, the FHA has guidelines regarding closing costs and documentation. A title agency must be detailed and cost-effective to fall within the FHA loan requirements.
Due to the number of predatory lenders and refinancing scams, there is a detailed documentation process for all VA-guaranteed home loans.
Call Federal Standard Abstract today at 718.888.7778 to open an order. We guarantee smooth sailing and a confident closing every time.