How do FHA Home Loans differ from others in Oak Lawn? Compared to other home loans, the FHA or Federal Housing Administration requires a minimum credit score of 500 and allows you a down payment of as little as 3.5% of a home’s selling price. They will also allow “0” credit scores by supplementing with non-traditional credit. With FHA options, this is a loan program that was designed for first-time home buyers. What are the credit score and down payment requirements for FHA loans? If your credit score is between 500 and 580, you’ll be required to put down 10% of the purchase price. For scores of 580 and higher, 3.5 % is required. What is the Waiting Period for Bankruptcies and Foreclosures? There is a 2-year waiting period after the discharge date of a Chapter 7 bankruptcy, unless there were extenuating circumstances that were beyond the borrower’s control. For a Chapter 13 bankruptcy, the waiting period is 12 months after 12 months of on-time trustee payments. What about PMI? Private mortgage insurance or PMI is attached to all FHA loans. With less than 10% down, it remains on the life of a 30-year mortgage. If you put down more than 10%, PMI is removed after the 11th year of a 15 or 30-year mortgage. MidAmerica Bancorp, Inc. 9720 SW Hwy Oak Lawn, IL 60453 https://www.google.com/maps?cid=11477635944718278118