FHA loans are an attractive option, especially for first-time homeowners in Peoria, Dunlap, Morton, Metamora, Bartonville, East Peoria, Washington, or anywhere throughout the State of Illinois, because it is insured by the Federal Housing Administration (FHA). Primarily, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments. Typically, the borrower can be approved with just 3.5% down vs 5% -20% that is required on other loan programs.
What is a FHA Loan?
A FHA Loan is provided by the Federal Housing Administration and offers lower down payment combined with more flexible credit guidelines and no income limits for all borrowers no matter if you are a first time or non-first-time homebuyer.
Benefits of FHA Loans
There are many benefits to FHA Loans, beyond just a lower down payment. FHA loan allow for lower credit scores down to 580 credit score, no income limits, higher debt-to-income ratios, and less time from a bankruptcy or foreclosure.
FHA Loan Eligibility
FHA Loans have more flexible requirements than traditional conventional mortgages. There are no income eligibility requirements or geographic restrictions and lower credit scores than other conventional loan programs. In some cases FHA loans have no credit scores with non-traditional credit tradelines acceptable. Non Occupant co-borrowers are allowed as well. For more details, please call us at 309-222-8286.
FHA Loan Limits
Different counties have different limits on how much you can borrow for an FHA Loan, but in January 2018, the maximum FHA loan amount for most counties is $294,515.
Get Pre-Approved for a FHA Loan
If you are a first-time home buyer or simply seeking a lower down payment in Peoria, or anywhere in Illinois, contact Home Mortgage Specialists, Inc. at (309) 222-8286 for more information, or fill out the form on this page.