FHA Loans

FHA Loans

FHA loans for Illinois residents 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 vs 20% that is required on other loan programs. Jordon Yates and his mortgage team are a leading provider of FHA loans all over Chicago and surrounding areas like Cicero, Oak Park, Des Plaines, Oak Lawn, Skokie as well as the whole state of Illinois. For more information on FHA loans and how to qualify speak with an FHA home loan expert at 312-600-4513 or fill out the quick quote form on the right.

Advantages of FHA Loans

A few of the more important advantages of an FHA loan revolve around the lower credit score and down payment requirements. FHA guidelines make it possible for borrowers in Illinois with a 500 – 579 credit score to buy a home with a 10% down payment. If a borrower would rather put the minimum down payment of 3.5% they will need a credit score of 580 or higher. Compared to Conventional loans, FHA makes it easier for individuals with lower credit scores and smaller down payments to get a loan approval.

How to Qualify for an FHA Loan

FHA makes it much easier to qualify for an FHA loan due to their lower down payment and credit score requirements. As stated above, you can qualify with as low a score as 500 and as little as 3.5% for a down payment. The best way to know what you qualify for is to call us at 312-600-4513 or to apply online by clicking on the “Apply Now” button at the top.

Of course credit scores and down payments are a major factor in qualifying but you will also have to demonstrate your ability to pay your monthly mortgage by providing proof of income. FHA guidelines will allow us to approve you for a mortgage with a Debt-to-Income ratio as high as 55%. To calculate your debt-to-income ratio you take your gross monthly income and divide by your minimum monthly payments for those items reporting on your credit report. These items will include debts such as student loan, credit cards, car payments, personal loans, and others. You will also not want to forget to include child support/alimony if you are obligated to pay those.

As an example, let’s say you make $5000 gross income every month. We can only use 55% of your monthly income and that amount is $2750. Your credit card minimum payments come to $250, your student loans are $200, and your car payment is $450 for a total of $900. $2750-900 = $1850. This $1850 is the absolute maximum you would be able to spend on your new FHA loan. Keep in mind, this amount will also have to include taxes, insurance, Mortgage Insurance Premium, and condo or HOA dues.

Mortgage Insurance Premium (MIP’s)

FHA Loan Limits – Illinois

FHA Loan Limits for Illinois Counties:
 Cook, Dekalb, Dupage, Kane, Lake, Will
Single Duplex Tri-plex  Four-plex
$368,000  $471,100  $569,450  $707,700

 

FHA Loan Limits for Illinois Counties:
 Most other IL Counties
Single Duplex Tri-plex  Four-plex
$314,827   $403,125   $487,250   $605,525

Apply for an FHA Loan

Jordon Yates and his mortgage team is a leading provider of FHA loans all over Chicago and in surrounding areas like Cicero, Oak Park, Des Plaines, Oak Lawn, Skokie as well as the whole state of Illinois. For more information on FHA loans and how to qualify speak with an FHA home loan expert at 312-600-4513 or fill out the quick quote form on the right.

FHA Loans

Follow Jordon Yates - i3 Lending, Inc. On Social Media

 

Licensing

Jordon Yates - NMLS #272722

i3 Lending -  NMLS #1020884
Licensed in: AL, AR, CA, CO, DC, FL, IL, LA, MD, MI, MS, NJ, NC, OH, OR, PA, SC, TN, TX, WA

nmlsconsumeraccess.org

Contact Us

Jordon Yates - i3 Lending, Inc.
Chicago, IL 60647

Number:
(312) 600-4513