New Lenox FHA Home Loan

Serving Illinois Since 1997

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FHA Purchase Loan Program

An FHA loan is a mortgage issued by federally qualified lenders and insured by the Federal Housing Administration (FHA). FHA loans are designed for low-to-moderate income borrowers who are unable to make a large down payment.

FHA Down Payment and Credit Scores

For borrowers interested in buying a home with an FHA loan with the low down payment amount of 3.5%, applicants must have a minimum FICO score of 580 to qualify. However, having a credit score that’s lower than 580 doesn’t necessarily exclude you from FHA loan eligibility. FHA programs with lower than 580 scores with are available with a 10% down payment.

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FHA mortgage rates in New Lenox

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Eligible Property Types

Single-family houses – 2 to 4-unit residences (when one unit is owner-occupied) – Manufactured homes (mobile homes) – Condos FHA loans are for owner-occupied properties. Second homes and investment properties don’t qualify. However, a second home could qualify if the first home is not already a primary residence and doesn’t have an FHA loan.

FHA Pre-Approvals

We provide our borrowers fast pre-approvals, lower rates and exceptional customer service. Currently we are the highest rated and reviewed mortgage company in.   We can get you pre-qualified in minutes and if approved shopping for your FHA home loan today.

Additional FHA Mortgage Options

If you find a home that needs fixing up, ask about our FHA home renovation programs. Did you know FHA offers forgivable grants in. (minimum credit score 580) Start your New Lenox FHA home loan now or call the FHA mortgage hotline at 888-882-1058. $60,000 Minimum Loan Amount

5 Reasons why home owners are choosing New Lenox FHA home purchase loans.

1. You don’t need perfect credit to qualify for FHA

Credit-score requirements for FHA loans depend on the down payment. For an FHA loan with a down payment as low as 3.5 percent, the borrower’s credit score must be 580 or higher. Those with credit scores between 500 and 579 must pay at least 10 percent down. People with credit scores under 500 generally are ineligible for FHA loans. However, don’t get discouraged there is more options available including alternative lending programs. The FHA does make allowances, under certain circumstances, for applicants with “nontraditional credit history or insufficient credit” if other criteria are met. Ask your New Lenox FHA lender or an FHA loan specialist whether you qualify. You must be out of bankruptcy at least two years and not have had a foreclosure within the past three years to get an FHA loan. In addition, you must be current with payments on federal student loans and income taxes.  If you do not qualify because of one of the above you still may qualify for a non-prime or alternative lending, most non-prime and alternative lending programs require a higher down payment.

bad credit fha loan

FHA loans even with bruised credit

2. The minimum FHA down payment is 3.5 percent

For most mortgage borrowers, the FHA requires only 3.5 percent of the home’s purchase price as a down payment. For example, if you bought a $200,000 home, the minimum down payment would be $7,000. If you had a conventional mortgage through a lender that required 20 percent down on that $200,000 house, you’d have to come up with $40,000. FHA borrowers can use their savings, a financial gift from a family member or a homebuyer grant for down-payment assistance.

3. Closing Costs May be Covered.

The FHA allows home sellers, builders and lenders to pay some of the borrower’s closing costs, such as for an appraisal, credit report or title expenses. For example, a builder might offer to pay closing costs as an incentive for the borrower to buy a new home. Lenders typically charge more interest on the loan if they agree to pay closing costs. Borrowers can compare loan estimates from competing lenders to decide which option is the best for them. The total for closing costs will vary based on the state you live in, the size of your loan and whether or not you pay points to lower the interest rate. Lenders are required to give you a Good Faith Estimate, or GFE, within three business days of your loan application. The GFE will give you a good idea early in the process of what your closing costs will be. HUD holds FHA lenders to no more 3 percent to 5 percent of the loan amount for closing costs.

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4. There are two types of mortgage insurance to pay

Mortgage insurance is required when borrowers pay down less than 20 percent. It insures the mortgage for the lender in case the borrower defaults. All New Lenox FHA loans require the borrower to pay two mortgage insurance premiums: Upfront premium: 75 percent of the loan amount, paid when the borrower gets the loan. The premium can be rolled into the financed loan amount. Annual premium: 45 percent to 1.05 percent, depending on the loan term (15 years vs. 30 years), the loan amount and the initial loan-to-value ratio, or LTV. This premium amount is divided by 12 and paid monthly. So, if you borrow $150,000, your upfront mortgage insurance premium would be $2,625 and your annual premium would range from $675 ($56.25 per month) to $1,575 ($131.25 per month).

5. You can borrow cash for home repairs

FHA 203k Home Loan

The FHA has a special loan for borrowers who want extra cash to make repairs to their homes. The chief advantage of this type of loan, called a New Lenox FHA 203(k), is that the loan amount is not based on the current appraised value of the home, but on the projected value after the repairs are completed. A so-called “streamlined” 203(k) allows the borrower to finance up to $35,000 for nonstructural repairs, such as painting and replacing cabinets or fixtures. Among the repairs an FHA 203(k) will cover: Bathroom and kitchen remodels. Flooring. Plumbing. Decks and patios. Heating and air-conditioning systems. One big benefit of a New Lenox 203(k) is that it allows you to buy a fixer-upper that you might not have been able to afford otherwise. However, not all properties qualify and applying for the loan can be difficult because a detailed proposal of the work and cost estimates are required.

Another great options is the Fannie Mae HomeStyle®

The New Lenox Fannie Mae HomeStyle renovation loan allows you to either purchase a new home or refinance your existing home and make personalized improvements with one loan closing. The cost of your personalized improvements is placed in an interest-bearing Escrow account and disbursed as the work is completed and inspected. The HomeStyle loan does not have any minimum amount of improvements or any restrictions on the type of repairs that can be included in your loan. The only requirement is that any improvement must be permanently affixed to the property and adds value to your property. HomeStyle allows you to build home equity while increasing your comfort and enjoyment in home ownership.

FHA Home Renovation

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New Lenox is a village in Will County, Illinois, United States. The village population was 24,394 as of 2010.

New Lenox is located approximately 36 miles southwest of downtown Chicago at 41°30′30″N 87°58′14″W / 41.50833°N 87.97056°W / 41.50833; -87.97056 (41.508251, -87.970597).[3] According to the 2010 census, New Lenox has a total area of 15.683 square miles (40.62 km2), of which 15.66 square miles (40.56 km2) (or 99.85%) is land and 0.023 square miles (0.06 km2) (or 0.15%) is water.[4]