Top 3 Reasons to Work with a Direct Endorsement Lender



Not all lenders are the same when it comes to offering FHA loans.  Look for a lender who has been granted Direct Endorsement authority by the Federal Housing Administration (FHA).  This means the lender has the authority to underwrite and approve FHA loans in-house with its own staff of underwriters, as opposed to relying upon another lenders’ underwriters to perform this work for them.

The Direct Endorsement designation is granted only to mortgage lenders who exemplify and abide by the standards set forth by FHA and the U.S. Housing and Urban Development (HUD), the parent agency of FHA, by demonstrating operational integrity, financial strength and stability, as well as going through a rigorous review process of its underwriting and closing processes and capabilities.

Here are the top three (3) reasons a consumer should work with a Direct Endorsement lender, like Foote Capital Mortgage Company:

  1. By approving and closing loans in-house, a Direct Endorsement lender can streamline the process of obtaining a mortgage.
  2. A Direct Endorsement lender can follow FHA’s loan approval guidelines more closely, as opposed to following more restrictive added requirements, called “overlays,” that many lenders must adhere to.
  3. Many lenders deny loans that FHA’s computerized underwriting system cannot approve, but a Direct Endorsement lender has another option, manual underwriting.  This is where an underwriter must use his/her experience to manually make a judgement call whether to approve or deny a loan based on circumstances that a computer simply cannot make.  Sometimes, this turns a loan denial into a loan approval.

To find out more information give Team Rebecca a call at 717-609-4044 or go to our website: