Berwyn, IL FHA Loans
FHA Loan Company in Berwyn, IL
Buying a home can be an exciting time. It can also be a time filled with stress and mortgage headaches. Let our team at Compass Mortgage make it easier for you, from start to finish. We have the tools and the resources to help get you into your dream home quicker.
Compass Mortgage is Home to Your Easy Mortgage Experience
When you know it is time to start looking for that special home for you and your family, let our experienced home mortgage loan team go to work for you. Whether it is looking for your very first home, refinancing, upgrading, or downsizing, we have the mortgage options that will help you achieve your goal.
At Compass Mortgage, we have a wide variety of mortgage loan options, all of which are designed to assist our clients in securing a home loan. One of our most popular mortgage loan options for those in Berwyn, IL is the FHA loan.
What is an FHA Loan?
FHA home loans are government-backed loans. These loans are insured by the Federal Housing Administration, which protects the lender against loss if you can no longer make monthly mortgage payments.
FHA loans are available to homeowners with low down payment options and lower minimum credit score limits. If your lender says you do not qualify for a conventional loan, turning to an FHA loan is always a good option.
Berwyn FHA loans are very attractive mortgage vehicles for first-time homebuyers, but you do not have to be a first-time homebuyer to qualify. The benefits of an FHA loan are many:
- Lower down payment options.
- Lower credit score requirements when compared to other loan types.
- Closing costs are often rolled into your mortgage loan.
- If you have had a bankruptcy or other serious financial issues, you may still qualify for an FHA loan.
- Quick closing times.
- The mortgage application and other initial paperwork requirements are often handled online.
Requirements for Illinois FHA Loans
FHA loan lenders in Berwyn will let you know everything you need to know when it comes time for qualifying for an FHA loan. Anyone can apply for an FHA loan, whether you are a first-time homebuyer or a returning homebuyer. There are specific loan requirements in order to be eligible for an FHA loan.
- Down payments are generally low. To qualify for a 10% down payment, your credit score should fall between 500 and 579. To qualify for a 3.5% down payment, your credit score will need to be 580 or above.
- Your debt-to-income ratio should be 43% – 45% or lower.
- You need at least two years of steady employment.
- What is known as the Credit Alert Verification Reporting System (CAIVRS) must be clear.
- If you were foreclosed on, the 3 year waiting period must be over.
- If you declared bankruptcy in the past, you must have passed the 12-24 month waiting period since that time.
- The home you are buying must be your primary residence. It needs to rest on a permanent foundation and must have been built on or after June 15, 1976. It can be a single-family home, a 2-4 unit multifamily home or a HUD-approved condo.
At Compass Mortgage, our Berwyn FHA mortgage loans are some of our most popular mortgage options. Even though an FHA loan is one of the easiest types of loans to qualify for, you may be left with more questions than answers, especially if you have never purchased a home before.
Berwyn FHA Mortgage Insurance
One of the requirements you will have with an FHA loan is that of FHA mortgage insurance. Mortgage insurance is put in place to insure your FHA loan lender against losses should you default on your loan.
You will pay mortgage insurance for the life of the FHA loan. If you made a down payment of 10% or greater, the mortgage insurance will be on your loan for 11 years.
FHA Loan Limits
With any FHA loan, there is a maximum limit on how much you can borrow. Loan limits are set based on county property values. Berwyn, IL FHA mortgage loans, and their loan limits, will differ based on whether the property you are buying is a single-family property, or multiple units.
Interest rates are at historic lows these days and if you are looking to buy a home or refinance, a Berwyn FHA home loan could be just right for you. Your home is personal, and we want to see you living there as soon as possible.
It used to be a confusing process to secure a mortgage loan for the home of your dreams. At Compass Mortgage, we will help you achieve the results you have been dreaming of. Contact our mortgage loan team today.