Chicago FHA Loans

Right now is a great time to apply for a Chicago FHA loan for anyone considering purchasing a new house in the city. The Federal Housing Administration (FHA) has been helping Americans afford new homes for over seventy years. During that time, millions of families have made the dream of homeownership a reality. The FHA has also helped many families avoid foreclosure during these trying economic times.

Conventional Loans vs. FHA Loans

Conventional loans today require very high down payments, which can sometimes be as much as 20%. This makes it difficult for first time homebuyers to afford new homes. With an FHA loan, you are only required to pay a low 3.5% down payment to procure the loan. Plus, the FHA does not care where the money comes from, so you can have your employer, friend or charitable organization pay the fee.

Additional Benefits

There are many great benefits of FHA loans in addition to the low down payment feature. With an FHA loan, the entire cost of the loan is much lower than conventional loans. This is because you won’t have to pay private mortgage insurance (PMI) and will be offered very competitive interest rates. The other great benefits of the FHA home loan program in Chicago include streamline refinancing, easy approval standards and flexible repayment plans.

Eligible Houses

The houses eligible for FHA loans in Chicago include one to four-unity family properties. If you find a house that you would like to make energy efficient upgrades to such as installing a solar water heater, you can apply for an Energy Efficiency Mortgage (EEM). There is even a mortgage available for people who need to make huge repairs on the new property called the 203(k). Be sure to discuss each option with your lender to find a mortgage plan that suits your needs.

Where to Start

Getting pre-approved for an FHA loan is a great way to ensure you meet all the requirements for a new mortgage. You will also have an idea of how big of a loan you’ll be able to qualify for. To get started, take a minute to fill out our secure online form. It’s fast, free and has no obligation. Getting pre-approved for an FHA loan has never been easier!

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