Illinois FHA Mortgage Loans

Illinois FHA Mortgage Loans

Many people living in Illinois are choosing FHA mortgage loans as the way to finance their dream home. Just a few short years ago, FHA market share was minimal, but today FHA mortgage loans comprise almost half of the new home financing. FHA is now one of the most popular mortgage loan options when financing a home, and it is probably safe to call FHA loans “mainstream”.

Most people are aware that FHA isn’t actually a lender who lends you money, they only act as an insurance company and insure your loan in the event of default. This means that when you take out your FHA loan, you will be required to pay (up front) something called UFMIP — short for Up Front Mortgage Insurance Premium. This amount of money varies from 1.5% of your loan amount to 3% of your loan amount depending on loan program.

Illinois FHA Mortgage Loan Highlights Include:

  • In addition to UFMIP, monthly mortgage insurance is required on all FHA loans
  • FHA does not allow prepay penalties on FHA loans
  • FHA loans allow seller to pay closing costs
  • Down payment requirement is 3.5%

Illinois FHA Streamline Refinance

For those people who currently have an Illinois FHA loan, when rates drop, the FHA streamline refinance is the most popular way to lower their payment. The FHA streamline program allows you to get a lower rate and is the easiest way to do it. The primary criteria to be eligible for the FHA streamline is that you have made your mortgage payments on time for the last 12 months.

Illinois FHA 203k Streamline Program

The FHA 203k streamline program is the FHA loan of choice when you want to buy a home that is in need of a few repairs. The FHA 203k streamline loan will allow for up to 35,000 to be set aside for repairs and the money can be paid directly to the contractor who does the work. 203k streamline loans can be tricky, so be sure to work with a loan officer who has experience helping people finance their home with a FHA 203k streamline loan.

Illinois FHA 85% Cash Out Program

For different reasons, many times people will want to access a portion of the equity in their home. The FHA 85% cash out program makes that possible. Many people use this as a way to consolidate high interest credit cards or pay off other debts.

If you have questions about any of these FHA mortgage loan programs, be sure to speak with an Illinois Mortgage Expert now!

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