Wisconsin, Illinois, Minnesota and Florida Mortgage Bankers

Chicago home buyers returning to FHA loans

FHA mortgages are becoming popular again in Chicago! It’s an institution that has been around for a long time, since June 27, 1934. The Department of Housing & Urban Development folded the Federal Housing Administration (FHA) under its umbrella in 1965.

Blemished Credit History
If your credit is less than perfect, FHA might be the loan for you. You may qualify for an FHA loan even though you have had financial problems.

Competitive Rates and Terms
- Mortgage insurance is funded into the loan, meaning a premium of 1.75% is added to the loan balance instead of being paid out-of-pocket. In addition, a small portion for the mortgage insurance premium is added to the monthly payment, but it is far less than private mortgage insurance premiums.
- Borrowers can finance 96.5% of the purchase price and put down 3.5 percent. In some instances, when combined with acceptable gift funds (ask your loan officer for additional information), the down payment can be zero.
- Allowable debt ratios are higher than the debt-ratio limits imposed for conventional loans.

We can use FHA to refinance existing Conventional ARM’s with little or No Equity.

FHA loans are available to $410,000 (2009 Limit) for the following counties:
Cook County, DeKalb County, DuPage County, Grundy County, Kane County, Kendall County, Lake County, McHenry County and Will County.

FHA suspended its risk-based pricing system that, for the first time, used credit scores and required higher mortgage premiums from those whom it believes pose a higher risk of default. Effective October 1, 2008 FHA will no longer base its mortgage insurance premiums on a combination of credit bureau score and loan-to-value ratio.

View the new premiums.

For more information on Chicago, Illinois FHA refinance, FHA cash out refinance and FHA purchase loans please visit our Chicago FHA page.

Also view our other Government Loans including VA and Rural Housing: http://www.madisonmortgageguys.com/government_loans/index.htm

Your Chicago Mortgage Banker: