Illinois, Wisconsin and Florida FHA Mortgage Loans
AMERISTAR CAN HELP YOU QUALIFY FOR AN FHA
LOAN
- Get a preliminary loan approval in minutes
- Competitive and attractive rates
- Low down payment
- No income limit restrictions
- Long-term amortization
- Fixed and arm loan rates
- Financing for 1-4 unit properties
- PMI is less than what it would be for a conventional loan
- 3% down for 97% financing
- 100% financing with gift money is available. Please call for details.
What is PMI
(Private Mortgage Insurance)?
PMI is money paid to insure the
lender against loss due to foreclosure or loan default. Mortgage insurance
is required on conventional loans with less than a 20 percent down payment.
FHA mortgage insurance requires a payment of 1.5 percent of the loan
amount to be paid at closing, as well as an annual fee of 0.5 percent
of the loan amount added to each monthly payment.
What is an FHA Mortgage Loan?
In 1965 the Department of Housing
and Urban Development (HUD) was formed. Within HUD operates the Federal
Housing Administration (FHA), which has the primary responsibility for
administering the government home loan insurance program. This program
allows home buyers who might otherwise not qualify for a home loan to
obtain one because the risk is removed from the lender by FHA who insures
the loan for the lender.
The most popular FHA home loan program is by far is the 203(b). This
is your standard fixed rate or adjustable rate loan for 1-4 family owner
occupied houses and only requires a minimum of 3% from the borrower.
This loan also permits 100% of their money needed to close to be a gift
from a relative, non-profit organization, or government agency.
The main advantage to a FHA home loan is that the credit criteria are
not as strict as Conventional Loans sold to Fannie Mae (FNMA) or Freddie
Mac (FHLMC). Someone who may have had a few credit problems or no traditional
credit should not have a problem obtaining FHA financing. The monthly
mortgage insurance premium is cheaper for an FHA loan verses a conventional
loan with 3% down. Finally, FHA loans may may require less income to
qualify as they will exceed the Conventional debt ratios of 28/36% as
their standard is 29/41%.
Many people make the mistake and assume that FHA loans are only available
for first time home buyers. This is not true. FHA loans are available
to anyone, whether your first or fifth home and can be used to purchase
a home or refinance a home. If refinancing a home the current loan DOES
NOT have to be an FHA loan.
HUD announces 2008 FHA home loan limits
Search FHA Maximum County Mortgage Limits by State
Current FHA Mortgage Rates
Contact us for a Free Pre-Qualification
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Online
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