FHA loans are an attractive option, especially for first-time homeowners because it is insured by the Federal Housing Administration (FHA). Primarily, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments. Typically the borrower can be approved with 3.5% down and these can be from a gift or your own funds. This loan program is more liberal than a conventional loan with expanded debt to income ratios and credit scores as low as 581. I will personalize your loan options based on your individual needs and profile. For more information on FHA loans in Naperville, Plainfield, Yorkville, or Oswego as well as the whole state of Illinois, contact me today at 630-554-0070 x101.
FHA Loans Benefits
We are unique as we are able to lend at a higher debt to income ratio than many other lenders for this program. This will give you more buying power and allow you to become pre-approved for a larger purchase price. This loan type is ideal for a first time homebuyer or a move up buyer who may have more debt or want to keep their current home and rent it out. The biggest benefit that I see is the combination of low down payment and aggressive credit score requirements make this a good loan for many buyers. We can do FHA loans for someone without any credit score by documenting alternative credit. FHA loans, as well as others, may have to be manually underwritten rather than using an automated system which is an advantage of this type of loan over others.
FHA Loans Limits
FHA loans limits are determined by the county that you live in. The 8 collar counties surrounding Chicago the maximum loan is $365,700, however, if you’d like to look up your limit where you are considering buying you can click here and view your county loan limits.
FHA Loan Eligibility
There are many benefits to an FHA Loans. We accept credit scores starting at 581 and up. We can help you build credit if you currently do not qualify. Another qualification of FHA Loans are the debt to income ratio. We require a max debt to income ratio of 55%. In regards to down payments the minimum down payment required is 3.5%, family member can also gift the money. If you need help with your debt-to-income ratio a non-occupied owner can co-sign for you.
- Credit Score Minimum of 581
- Minimum Downpayment of 3.5%
- Debt to income ratio of max 55%
Get Pre-Approved for an FHA Loan Today!
Although we are located in Oswego, IL, to help better serve our clients, we also lend in Naperville, Aurora, Plainfield and all throughout the states of Illinois and Wisconsin. Click here to get Pre-Approved today!