Does FHA restrict their loans from someone that has had a Federal conviction?
Lending answer: It depends on if the Feds suffered a loss and/or if the conviction resulted in the prospective borrower being placed upon one of several Federal lists. Part of an FHA Underwriter’s function is to verify that a prospective borrower for an FHA insured mortgage is not barred from participating in FHA insurance. There are several background checks made on borrowers; FHA comes with four of its own in addition to the standard checks. Here re the FHA background checks: The first two are open to the public: EPLS: https://www.epls.gov/epls/search.do LPD: https://www5.hud.gov/ecpcis/main/ECPCIS_List.jsp All parties to the transaction – buyer(s), seller(s), Realtor(s), appraiser, loan originator, settlement agent – are run through both of these background checks. The second two are limited to authorized users: In addition to the Excluded Parties List and LImited Denial of Participation, the prospective borrower must also pass USA PARIOT and CAIVRS (Credit Alert Interactive Voice R
