FHA, also known as the Federal Housing Administration, operates under the control of the Department of Housing and Urban Development (HUD) and has the primary responsibility for administering the government home loan insurance program. This program allows buyers who might otherwise not qualify for a home loan to obtain one because the risk is removed from the lender by the FHA. The most popular FHA home loan program nationwide only requires a minimum of 3.5% from the borrower and permits 100% of their money needed to close to be a gift from a relative, non-profit organization, or government agency. The main advantage to a FHA home loan is that the credit criteria for a borrower are not as strict as FNMA or FHLMC. Someone who may have had a few credit problems should not have a problem obtaining FHA financing.

If you qualify, a FHA loan might be just what you need to purchase your first home and open a new door in your life.

Benefits of a FHA loan include:

•    The Federal Housing Administration insures the loan, which makes taking out a loan affordable and easy for many borrowers that qualify.
•    The FHA loan is made to make getting a loan for a new home as easy as possible.
•    The requirements for the FHA loan are broad which will help your client get a loan.
•    Borrowers need only 3.5% of the house pricing as a down payment.
•    The 3.5% can be gifted funds.
•    Those who qualify may receive a higher amount than with non-Government programs.

FHA Loan Limits for Chicagoland:

•    One Family Home - $410,000
•    Two Family Home - $524,850
•    Three Family Home - $634,450
•    Four Family Home - $788,450