What types of business forms can be approved as an FHA lender?

A Nonsupervised or Investing Mortgagee must be organized in one of the following acceptable business forms: 
  • Corporation
  • Limited Liability Company (LLC)
  • Series LLC
  • Partnership
  • Nonprofit 
A sole proprietorship is not an acceptable business form. 
For additional information see Handbook 4000.1 I.A.3.c.i. available at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-02177