Illinois FHA Loan
Buying a new property in Illinoise can be frustrating especially when you're trying to lay down a foundation for your like on the spread out countryside of Illinois. It's no secret that Illinois that is a rapidly expanding metro state with neighborhoods and condos popping up all over the place. If you're looking to buy in Illinois there's no better way than with an Illinois FHA mortgage.
Some of the options available to you outside of purchasing a condominium are foreclosures, seizures and other low-priced homes. All of these qualify for FHA home loans, and if you're a first time home buyer, you qualify as well.
In order to qualify for an Illinois FHA loan you must meet certain standards. The guidelines for these standards, while evaluated on a case by case basis, are still rather stringent:
- You must have good to excellent credit, although there is no minimum credit score
- You must have enough income to pay for all of your monthly debts
- You must be able to afford the closing costs
However, along with the above and other numerous restrictions, there are also excellent benefits to having an FHA home loan in IL, including:
- Help with down payments-occasionally FHA may offer a grant to help with or cover the entire cost of your down payment
- A low down payment of 3.5%, as opposed to the general 10%
- Special financing for your closing costs, including a reduction clause for repairs that do not need to be made
- Insurance on your FHA mortgage
You should know that while FHA insures mortgages made thru approved FHA mortgage lenders, they do not insure FHA loans.
- 30 year fixed rate
- Bruised credit
- Low credit
- Interest only
- Low income
By offering buyers, especially first time buyers, a number of ways to utilize an Illinois FHA home loan in Illinois, mortgage lenders are able to offer the most competitive mortgage rates.
This makes it especially important to find a reliable Illinois FHA mortgage lender. Reliable lenders will tell you that not every cost is covered under an FHA loan in Illinois. Some of the costs you will be responsible for are:
- Closing Costs including attorney's feeds, title search fees, homeowner's insurance and fees for title insurance
- Loan origination fees
- Optional mortgage insurance fees-a good idea if you have an uninsured loan
There are also a few questions that you'll need the answers to when you're applying for an IL FHA home loan in Illinois:
- What is the difference between a variable and fixed rate?-The difference is that fixed rates stay the same for the life of your loan, even if the rate goes up or down. A variable rate changes with the daily index-your payments may go down at times, but you could end up paying more in the long run if you can't refinance at a low rate.
- Why do I need an FHA mortgage in Illinois?-FHA mortgages protect you against damage and against other costs that could result in the damage of your property. If you're buying a used home, it's important to keep yourself safe with title insurance, mortgage insurance and to be backed by the housing division.
You'll know you have found the perfect Illinois mortgage lender when you see the following options, characteristics and information available to you:
- The mortgage lender should inform you of all of your options including but not limited to FHA loans, FHA mortgages and FHA refinancing
- The mortgage lender should offer you the most competitive FHA mortgage rates and tell you what other rates are available in the state
- The mortgage lender should offer you the choice between variable and fixed rates with full disclosure on the benefits and drawbacks of each decision
- The lender should be FHA approved-if they're offering you an FHA loan or mortgage and they're not insured by the FHA, you should turn and run the other direction.
Once you've found an Illinois FHA mortgage lender in IL who can meet your personal needs and the above criteria, it's time to start planning the move into your new property.