Chicago FHA loans are meant for everybody, according to the FHA. But they’re not a good idea for everybody. Read this article to see if they are a good idea for you.
An Overview of FHA Loans in Chicago
Chicago FHA loans come in two varieties:
- forward loans
- reverse mortgages
Since these loans are insured by the FHA (Federal Housing Administration), they are less risky to lenders, and that translates into easier-to-qualify loans.
If you’ve had credit or employment issues but still want a mortgage loan, call me now at 847-840-8884 to see if you qualify for an FHA loan.
Forward Chicago FHA Loans
Yup, that’s how regular loans are called since they came up with reverse mortgages.
Though there are several of these loans, the one most people think of when they think FHA loans is the 201(b) loan, the standard FHA loan, the one that can be used to buy a principal residence.
The other one that a lot of people have heard about is the 203(k) FHA loan. This one is used for buying a principal residence and rehab / repair / upgrade it.
Do you want to buy or refinance a house that needs some work? Call me at 847-840-8884 to find out how.
Note: the house does not have to be in shambles for a 230(k) loan; it could be a house that’s OK but you just want it to be better than OK.
This page, Des Plaines Mortgages, offers a good description of the program’s requirements.
Reverse Mortgages in Chicago
The FHA calls its revers mortgage loans HECMs (Home Equity Conversion Mortgages). They are intended for people 62 or older who don’t have all that much cash flow (but have enough to pay for property taxes and property insurance).
With FHA’s Reverse Mortgages, you borrow now and pay later. You can can get paid your all your loan in one lump sum, in installments, a combination of the two.
Later means 12 months after the borrower stops living in their home. In case of death, if there’s a surviving spouse that was not on the mortgage, that spouse can take over the loan, assuming a number of factors are met
- meet the requirements of the HECM program, except age.
- was married to the spouse on the mortgage at the time the loan was originated
- the lender knew about the marriage
- remained married to the mortgaged spouse throughout
- establishes legal ownership within 90 days of the death of the last borrower on the mortgage note
- uses the home as primary residence.
Call me at 847-840-8884 to find out more about this type of loan. It’s a complicated thing, even for a mortgage loan.
FHA Loan Limits for Chicago
Reverse mortgages in the Chicago area, like all FHA loans in the Chicago area are limited to the cap FHA places on loan amounts for Cook, DuPage, Kane, Lake, McHenry and Will County. (Ever since I started being interested in FHA loans, the limit has been the same for any and all properties.
|1 unit properties||2-unit properties||3-unit properties||4-unit properties|
If you’re in another county or year, this is the link to where HUD posts the FHA loan limits: https://entp.hud.gov/idapp/html/hicostlook.cfm.