How Long Does a Lender Keep a FHA Loan File?

The Federal Housing Agency mandates all FHA loan files are kept until three years after the loan is paid in full. This means a lender will retain a copy of all pertinent information in reference to a loan for an extended period of time. However, there may be other regulations that require the lender to keep the file even longer.

Why Keep Files?

Many private mortgage lenders will keep a mortgage file indefinitely. Since FHA loans are distributed from private lenders than guaranteed by the FHA, the policies of the private lender are just as important as federal policies in terms of how long the loan documents are kept. 

Should I Keep I File? 

Most borrower advisers recommend you keep a copy of your own loan file for at least 6 years after a mortgage loan has been paid in full. There may be issues in the future, such as a credit score problem, that require you to return to this original loan information. It can also be helpful to have these documents on file in case the IRS chooses to audit you in the future. Mortgages greatly affect your tax liability each year, so keeping files is key to preventing tax problems in the future.

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