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Illinois FHA Loans Have Grown In Usage Greatly
By: Madison Mortgage
Good for Borrowers with Prior Credit Problems
One of the most appealing qualities of the FHA loan is the fact that people with less than perfect credit can qualify. A general rule of thumb is if the last 12 months of credit history show prompt payment history without incurring too much new debt most people will qualify. Former bankruptcies are ignored if the discharge date was at least 2 years ago. Even former foreclosures are ignored if it happened at least 3 years ago.
Generous Loan Amounts
The highest allowed FHA loan is over $700,000 in most places. This means that the vast majority of first time buyers and middle income families should be able to find a home that suits their needs in this price range or lower.
Less Stringent Requirements for Home Condition
There was a time when home sellers were willing to drop the asking price of their home if the buyer would use a loan other than an FHA mortgage. That was due to the strict condition requirements necessary to pass the inspection of an FHA appraiser. However, the majority of those rules have been changed to make the appraisal process easier and more flexible.
Rates as Good as Other Loans
In the past, FHA loans might have had a mortgage rate that was 0.5% or more than a conventional loan for the same amount. Those days are over. Now the FHA rate is usually the same or maybe only 0.125% higher, at the most.
Visit our FHA Loans page for detailed program information:
For additional information or to see if you qualify, contact me below or apply online!
NMLS ID #1016
Toll Free: 877-240-5810
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Page Updated Last on: Mar 27, 2015