Ameristar Mortgage Blog

Chicago home buyers returning to FHA loans

FHA mortgages are becoming popular again in Chicago! It’s an institution that has been around for a long time, since June 27, 1934. The Department of Housing & Urban Development folded the Federal Housing Administration (FHA) under its umbrella in 1965.

Blemished Credit History
If your credit is less than perfect, FHA might be the loan for you. You may qualify for an FHA loan even though you have had financial problems.

Competitive Rates and Terms
·Mortgage insurance is funded into the loan, meaning a premium of 1.5% is added to the loan balance instead of being paid out-of-pocket. In addition, a small portion for the mortgage insurance premium is added to the monthly payment, but it is far less than private mortgage insurance premiums.
·Borrowers can finance 97% of the purchase price and put down 3 percent. In some instances, when combined with down payment assistance (ask your loan officer for additional information), the down payment can be zero.
·Allowable debt ratios are higher than the debt-ratio limits imposed for conventional loans.

We can use FHA to refinance existing Conventional ARM’s with little or No Equity.

Chicago FHA loans are available to $410,000 through the end of 2008.

FHA is on the verge of moving to a risk-based pricing system that, for the first time, will use credit scores and require higher mortgage premiums from those whom it believes pose a higher risk of default. The changes will not impact most borrowers and will actually require lower premiums for good credit and low loan to value loans.

View the new premiums.

For more information on Chicago, Illinois FHA refinance, FHA cash out refinance and FHA purchase loans please visit our Chicago FHA page.Also view our other Government Loans including VA and Rural Housing: http://www.ameristarmadison.com/government_loans/index.htm Ameristar Mortgage is your Chicago, Illinois Mortgage Banker: