Types of Illinois FHA Loans including Chicago, Streamwood, Naperville, Arlington Heights, Schaumburg, Northbrook, Mount Prospect and Glenview

Today's FHA Insured mortgage loan offers the flexibility borrowers are looking for along with the traditional benefits of low down payments, low closing costs, competitive interest rates, and easier qualifying ratios. The FHA mortgage can help you get the best and the lowest possible fixed rates for your mortgage and has helped a number of first time home buyers in getting a mortgage and buying the house of their choice.

Programs with an triple *** are programs that we currently offer. Visit our website for additional program information at http://www.MadisonMortgageguys.com.

***FHA 203(B):

The most popular FHA program is the 203b. The 203b is for 1-4 unit owner occupied purchase and refinance transactions. The reason for its popularity is the low down payment requirement (currently 3.5% of the purchase price) and the increased temporary maximum loan limits. You can search loan limits for your area here.

***FHA 234(C):

The 203c is the same program as the 203b except this program is for condos only.

FHA 203(H):

The 203h program is for disaster victims.

FHA 203(I):

The 203i program is for Outlying Areas which insures lenders against losses on mortgage loans used to

· purchase a proposed, under construction, or existing one-family dwelling, or
· refinance a mortgage on an existing one-family dwelling in a rural area or a farm home located on 2.5 or more acres of land adjacent to an all-weather public road.

The statutory loan limit for the Section 203(i) program is 75 percent of the amount available under Section 203(b) and the LTV is the same as that of the Section 203(b) program.

***FHA 203(K) Streamline:

FHA's Streamlined 203(k) program permits borrowers to

· finance up to an additional $35,000 into their mortgage to improve or upgrade their home before move-in, and
· quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser.

***FHA 203(K):

The Section 203(k) Rehabilitation Home Mortgage Insurance insures lenders against losses on mortgage loans used to

· purchase and rehabilitate an existing one- to-four-family dwelling (completed for more than one year) that will be used for residential purposes
· refinance and rehabilitate such a structure and refinance the outstanding indebtedness (not applicable for Streamline (k)), or
· rehabilitate a dwelling after it has been moved from one site to a new foundation (excluding manufactured homes).

Restriction: Section 203(k) should not be used unless the rehabilitation or improvement costs total a minimum of $5,000 (not applicable for Streamline (k)).

FHA 203(K) and 203(K) Streamline additional information:

Section 203(k) eligible improvements include items such as

· structural alterations (not applicable on Streamline (k))
· additions (not applicable on Streamline (k))
· reconstruction (not applicable on Streamline (k))
· remodeling (only minor remodeling allowed on Streamline (k))
· new siding
· plumbing
· painting
· decking
· heating and/or air conditioning
· electrical systems
· roofing
· flooring and carpeting
· energy efficient improvements
· major landscape work (not applicable on Streamline (k)), and
· pool repairs and pool fences.

Note: All health, safety, and energy efficient items must be addressed prior to completing general home improvements.

I think we will end with the FHA 203(K) and pick up with FHA Sections 203(n), 220 (d)(3)(A), 220(h), 223(e), 233, 238(c), 245(a), 247, 248, 251 and section 255 next time.

Your Illinois mortgage banker:

Dennis Hardy
Toll Free: (877) 240-5810 x23
dennis.hardy@madisonmortgageguys.com
www.madisonmortgageguys.com

Visit my blog at http://www.madisonmortgageguys.com/blog/

Recent FHA blog posts:

http://www.madisonmortgageguys.com/blog/content/fha-loans-in-illinois-and-wisconsin-including-chicago-fha-milwaukee-and-madison/

http://www.madisonmortgageguys.com/blog/content/illinois-and-wisconsin-fha-refinance-fha-cash-out-refinance-fha-streamline-va-irrrl-va-refinance-chicago-appleton-madison/

http://www.madisonmortgageguys.com/blog/content/chicago-home-buyers-are-returning-to-fha-mortgage-loans-no-down-payment/

http://www.madisonmortgageguys.com/blogs_dennis_hardy/content/types-of-wisconsin-and-illinois-fha-loans/