FHA Lenders In Chicago Illinois With No Overlays

FHA Lenders In Chicago Illinois With No Overlays 

Nationwide Mortgage & Realty is known as one of the top FHA Lenders in Chicago Illinois. Based in Oak Brook Illinois, The Gustan Cho Team at Nationwide Mortgage and Realty LLC offers government and conventional loan programs with no overlays 

What Are Overlays?

There are plenty of FHA Lenders In Illinois. However, how many Lenders In Illinois are there that have no overlays? The term overlay is very common in the mortgage industry. Most borrowers may not heard of the term investor or lender overlays on FHA Loans. Majority of lenders have overlays on one or more items on FHA Loans. Overlays is when a lender will not honor the minimum loan requirements set by HUD and will set higher lending standards of their own. Every lender is allowed to have higher standards than those imposed by HUD.  Lenders need to meet HUD’s minimum mortgage guidelines, however, they can go above and beyond BUT not below the minimum HUD standards.

Here are some common types of FHA Lender Overlays many banks and lenders have:

  • FHA minimum credit score requirements is 580 FICO for a home buyer to put a 3.5% down payment and qualify for a FHA Loan.
  • However, many FHA Lenders In Chicago Illinois have overlays on credit scores where they will have higher than 580 credit score requirements.
  • Most Lenders In Illinois require at least a 620 credit score while others may require a 640 FICO
  • Most FHA Lenders In Chicago have overlays on collections and charge off accounts
  • HUD, the parent of FHA, does not require outstanding collections or charge off accounts to be paid off
  • Most Lenders In Chicago Illinois have overlays on collections and charge offs and will require borrowers pay off their outstanding collections and charge off accounts
  • Other typical overlays on FHA Loans includes requiring borrowers verification of rent even though the automated underwriting system did not condition for it

No Overlays Business Model

Most Lenders have one or another form of FHA Lender Overlays, however, The Gustan Cho Team at Nationwide Mortgage and Realty LLC has a no overlay model. Here is our mortgage lending model:

  • Why have overlays when borrowers can meet the minimum guidelines set forth by HUD?
  • No Overlays on credit scores on FHA Loans
  • No Overlays on debt to income ratios on FHA Loans
  • No Overlays on collection and charge off accounts no matter how much the outstanding balance
  • Help Scenario Desk So If A Borrower has questionable credit, it gets clarified before pre-approval
  • No Overlays on VA Loans. Only requirement is 580 FICO Credit Scores
  • No Overlays on FHA Loans. Only requirements is 580 FICO Credit Scores
  • No Overlays on USDA LOANS. Only requirements is 580 FICO Credit Scores
  •  All manual underwrites require  verification of rent .
  • No credit tradelines are required unless conditioned on automated underwriting system
  • We go off automated finding on all government loan programs and no lender overlays on VA Loans and the only requirements is a 580 FICO Credit Scores
  • No overlays on VOR  and as long as the borrower has a 620 FICO Credit Scores, debt to income ratios can go up as high as 56.9% DTI on back end and 46.9% front end to get an approve/eligible per AUS Findings
  • NON-QM Loan Programs  where there is no waiting period after bankruptcy or foreclosure
  • Bank Statement loan programs for self employed borrowers
  • Ability to broker deals and correspondent relationships with wholesale lenders
  • 21 day loan closings.
  • One Stop Shop
The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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