If you are in the market for a new home in Chicago, then you would be hard-pressed to find a better loan option than an FHA Loan. One of the most popular loan programs nationwide is the 2017 Chicago FHA Loans. There are many reasons why these loans are so successful and we will go into great detail about those in this article. Rest assured that here at Loan Consultants we are experts in the realm of FHA Loans and we will do our best to get you the best loan program and rate that fits your financial goals. If you are interested in one of the 2017 Chicago FHA Loans then you need to call ASAP at 888-900-1020 or email us at firstname.lastname@example.org.
If you are interested in 2017 Chicago FHA Loans, then you need to know about all the guidelines that are included with FHA Loans and they are as follows:
– FHA Loans do have minimum credit scores to qualify, but they are some of the most generous guidelines around. As long as you have a credit score of 500+ then you are in business with regards to loan programs available. First of all, if you have a 580+ FICO score then you are eligible for an FHA Loan with only 3.5% down. If you have a 500-579 FICO, you are then required to have 10% down if you are going to want to get approved for a loan.
– FHA Loans also have some of the most generous debt to income ratios available to borrowers. First of all, if the borrower has a FICO score under 620, you can only have a debt to income ratio of 43%. However, if you have a FICO score greater than 620, the maximum debt to income ratio is 56.9% with a 46.9% front end maximum. A front end ratio percentage is the percentage of your gross monthly income that can go to your mortgage payment while the backend ratio is the percentage of your gross income that will go to all your monthly debt with your new housing payment. If you have a sub-620 FICO and you need a manual underwrite on your loan, your debt to income ratio will be limited 50%, but it could go past 50% with compensating factors to show credit worthiness.
– Seller’s concessions are available for you to obtain when getting 2017 Chicago FHA Loans but it is limited to a 6% maximum of the sale price of the home. You need to know that seller’s concessions cannot be used for down payments, but they can be used for thrid-party fees like appraisals, hazard insurance, buying points to bring down your mortgage rate, and any other closing costs that may arise. It is in your best interest to use all the seller’s concessions or they will need to be returned to the sellers as you cannot keep them.
Another important part of the FHA Guidelines when going over 2017 Chicago FHA Loans is the treatment of derogatory items that are on your credit report. These derogatory items include bankruptcies, foreclosures, and short sales. It needs to be known that after a derogatory item, that there is normally a mandatory waiting period to be had before you can obtain an FHA Loan. The waiting periods associated with these items are as follows:
– Chapter 7 Bankruptcy mandatory waiting period of 2 years from discharge date.
– Chapter 13 Bankruptcy is a requirement of at least 12 months into your Chapter 13 repayment plan with trustee approval or the day after your discharge date. With both of these cases, a manual underwrite will be needed in order to get the loan approved.
– For foreclosures, deed in lieu of foreclosures, and short sales, there is a manadatory waiting period of 3 years from the date of the sheriff’s sale or the date the title to the home comes out of your name.
As you can see, there are plenty of good reasons for you to get an FHA Loan. There is a reason why FHA Loans are the most popular in the United States as they off generous guidelines which allow for a wide variety of borrowers to take advantage of such great programs. If you need an FHA Loan, then you need to call Loan Consultants today at 888-900-1020 or email us at email@example.com. We look forward to working with you whenever you are ready, days, nights, weekends, or holidays.