In Chicago, FHA Loans are a GIANT source of loans for us. We actually close more FHA Loans than any lender in the country, but what are we saying when we talk about FHA Loans? A Federal Housing Administration Loan is actually a loan that is backed by the FHA’s mortgage insurance. It is a federal program that assists families with moving into a home with small down payment. The only current FHA requirement to buy a home is a down payment of 3.5 percent.
The program traces its roots back to the Great Depression of the 1920’s and was created to give banks insurance protection, and to assist homeowners and new home purchasers when the foreclosure rates and defaults on loans were skyrocketing. The FHA loan now operates primarily to help borrowers that can’t afford a down payment, or won’t qualify for private mortgage insurance (PMI). It’s an insurance policy for the bank that guarantees the loan against default. We use FHA to re-fi as well. Half of our refinancing that we now do is through FHA Loans. They allow the borrower to get a mortgage on up to 97.5 percent of the home’s value instead of topping out at of 90-95% for a conventional loan. FHA percentages are also lower than are seen with traditional loans. The rate won’t change, excepting for credit score, amount borrowed or percent borrowed. A conventional loan uses loan adjusters that change the rates and percentages for the mortgage loan. The Home Loan Expert actually underwrites Chicagoland FHA mortgage loans in house, because we’re a Direct Endorsed FHA Lender. Many mortgage companies, particularly those that gave up their FHA endorsement status during the early 2000’s when they weren’t being used extensively, have issues becoming an approved FHA lender again, while we maintained our FHA status so that we could continue to underwrite and close FHA loans.
Our process for home loan approval allows us to quickly process and approve FHA loans for families, giving them a way to move into their dream home and establish their lives. Since 2002 we have closed over $500 million in FHA loans for families in Missouri, Illinois, Indiana, Wisconsin, and Iowa.
Whether you’re looking to purchase a new home or refinance one in Chicago, Aurora, Elgin, Joliet, Naperville, Arlington Heights, Berwyn, Bolingbrook, Cicero, Des Plaines, Evanston, Gary, Indiana, Hammond, Indiana, Hoffman Estates, Mount Prospect, Oak Lawn, Oak Park, Orland Park, Palatine, Schaumburg, Skokie, Tinley Park, Waukegan, Wheaton or anywhere in the Chicagoland area, call or apply online at www.thehomeloanexpert.com
The Home Loan Expert
1913 W. Diversey Ave
Chicago, IL 60614