How Long Is an FHA Case Number Good For?

Federal Housing Administration (FHA) loans offer a pathway to homeownership, particularly for first-time buyers, by providing mortgage insurance to lenders. A fundamental component of this process is the FHA case number, a unique identifier assigned to a specific property and loan application. This number serves as a tracking mechanism, allowing the FHA to monitor the loan’s progression from initial application through closing. Understanding the duration for which this case number remains valid is important for borrowers navigating the FHA loan process.

Initial Validity Period

An FHA case number itself does not have a direct expiration date but remains tied to the property for which it was assigned. The practical “good for” period, however, largely revolves around the validity of the associated property appraisal. For FHA case numbers assigned on or after June 1, 2022, the initial appraisal is valid for 180 days from its effective date, extending the previous 120-day validity period.

Lenders typically assign an FHA case number early in the loan process when ordering the FHA appraisal. This number is assigned to the property, not the individual borrower. If a property was previously under an FHA loan application that did not close, the existing case number can be transferred to a new buyer for the same property. This continuity allows for streamlined processing, assuming the appraisal remains valid.

Factors Influencing Case Number Status

Various circumstances can affect the effective usability of an FHA case number, primarily due to the expiration of the associated appraisal. Delays in the loan closing process are a common reason, as an appraisal that exceeds its 180-day validity period will no longer be current. Significant property changes, such as major repairs or damage, can also necessitate a new appraisal, affecting the case number’s usability. If an appraisal expires, the case number becomes unusable without an updated appraisal.

FHA systems may automatically cancel uninsured case numbers after a prolonged period of inactivity. If the loan type changes from FHA to a conventional mortgage, or if the appraisal expires before closing, the lender may need to request cancellation of the FHA case number. This action clears the way for a new case number if the FHA loan process is to be reinitiated for the same property.

Requesting an Extension

When an FHA appraisal approaches its expiration, the responsibility for managing its validity and initiating any necessary extensions rests with the lender. Lenders use the FHA Connection system to update case information and process appraisal updates. Through this system, an updated appraisal can extend the validity period for up to one year from the effective date of the original appraisal report. This longer extension period applies to case numbers assigned on or after June 1, 2022.

The optional 30-day extension was eliminated, replaced by the new, longer standard validity periods. For an appraisal update or to address other issues affecting the case number’s status, the lender may be required to submit specific documentation. This can include reasons for any loan process delays or the current loan status to the FHA.