FHA Lenders In Chicago Illinois

FHA Lenders In Chicago Illinois With No Overlays On DTI & Collections

Gustan Cho Associates are mortgage brokers licensed in 48 states

This article covers FHA Lenders In Chicago Illinois With No Overlays

Gustan Cho Associates is known as one of the top FHA Lenders in Chicago Illinois. Headquartered in Lombard Illinois, Gustan Cho Associates Mortgage Group is a national mortgage company offering government and conventional loan programs with no overlays.

  • Overlays are additional mortgage guidelines that is above and beyond agency guidelines imposed by individual lenders
  • All lenders need to meet agency guidelines
  • However, each lender can set higher credit/income standards on top of agency guidelines

Qualifying for an FHA loan with a lender with no overlays in the Chicagoland area.

What Are Lender 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 be 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 are 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 Guidelines.

Common Lender Overlays

FHA minimum credit score requirements are 580 FICO for a home buyer to put a 3.5% down payment and qualify for an FHA Loan.

  • However, many Lenders In Chicago Illinois have overlays on credit scores
  • They will have higher than 580 credit score requirements
  • Most Lenders In Illinois require at least a 620 credit scores
  • While others may require a 640 FICO
  • Most 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
  • They often will require borrowers to pay off their outstanding collections and charge off accounts
  • Other typical overlays on FHA Loans include requiring borrowers verification of rent

This holds true even though the automated underwriting system did not condition for it.

FHA Lenders In Chicago Illinois With No Overlays Business Model

FHA Lenders With No Overlays Business Model

Most Lenders have one or another form of Lender Overlays. However, Gustan Cho Associates 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 government and conventional loans
  • No Overlays on debt to income ratios on government and conforming 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
  • VA does not have a minimum credit score requirement
  • No Overlays on FHA Loans
  • Only requirements are 580 for 3.5% down payment FHA Home Purchase Loan
  • Borrowers under 580 credit scores, 10% down payment is required
  • No Overlays on USDA LOANS
  • Only requirements are 580 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
  • There no lender overlays on VA Loans
  • No overlays on VOR
  • As long with 620 Credit Scores
  • Debt to income ratios can go up as high as 56.9% DTI on the 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

Borrowers seeking FHA Lenders In Chicago Illinois with zero lender overlays, contact us at Gustan Cho Associates at 800-900-8569 or text us for faster response. Or email us at gcho@gustancho.com.

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