Since many lenders have tightened their lending guidelines, one mortgage program continued standing the test of time. If you’re looking for a great mortgage option for your home in Illinois, obtaining an FHA mortgage is one of the best.
You may be asking yourself “Why FHA?” There’s actually 5 ways that an FHA mortgage can help you secure a better mortgage if you’re living in Illinois.
1. Rates are relatively low compared to other mortgage options. One of the strengths of FHA mortgages is the fact that you can secure a lower interest rate compared to conventional loans. This even applies to someone with slightly damaged credit.
2. FHA mortgages have lower down payment requirements. Whereas other mortgage programs require a 5% - 20% down payment in order to get approved, FHA loans only require 3.5% down leaving you with more money left over after purchasing your home.
3. Refinancing with an FHA mortgage can allow you to borrow more of the value of your home than traditional mortgages. FHA mortgage guidelines allow for a loan of up to 95% of the value of the property. This is highly desirable now since some property values in Illinois have dropped.
4. The qualifying guidelines for FHA mortgages aren’t as strict as other mortgage programs. Whether it’s a lower down payment requirement or allowing for more of your income to be used towards your housing expenses, FHA helps more homeowners successfully achieve homeownership.
5. FHA streamline refinances allow the changing the terms of your loan with minimal time and effort. FHA streamline refinances help you get into a new loan with minimal documentation requirements since they are geared to help homeowners that already have FHA mortgages.
As you can see, FHA mortgages are a valuable tool to use if you own a home or are looking to purchase a home in Illinois. They have been steadily helping homeowners achieve the American Dream.
