Mortgage Rates Above 7% Again: What Chicagoland Homebuyers Need to Know | September 2026

WEEKEND MORTGAGE MARKET UPDATE

Mortgage Rates Move Above 7%: What Chicagoland Homebuyers Need to Know

September 26, 2026 | David Braun | Mortgage Loan Officer

Mortgage rates moved sharply higher this week, pushing one major national weekly benchmark back above the 7% level and leaving daily lender-marketplace averages even higher heading into the weekend.

For Chicagoland buyers, the key message is not simply that rates increased. It is that mortgage strategy matters more when borrowing costs move quickly. Your loan program, down payment, credit profile, seller concessions and timing can all affect the final numbers.

Mortgage Rate Snapshot

Freddie Mac weekly average as of September 24, 2026: 30-year fixed: 7.03% | 15-year fixed: 6.42%. Freddie Mac reported the 30-year rate was up from 6.95% the prior week.

Daily Mortgage Rate Data Heading Into the Weekend

Daily lender-marketplace data can differ from Freddie Mac's weekly survey because the sources, borrower assumptions and reporting methods are different. NerdWallet's Zillow-based national data for Friday, September 25 showed average rates near the following levels:

Loan Type	Latest Daily Average	Market Context
30-Year Fixed	About 7.26% APR	Roughly 27 basis points higher than one week earlier
15-Year Fixed	About 6.67% APR	Remains well above year-ago levels
5-Year ARM	About 6.59% APR	Adjustable-rate options may price differently by borrower

Rate averages are market benchmarks only. Individual borrower rates can vary based on credit profile, loan amount, occupancy, property type, down payment, points, lender pricing and other factors.

Why Did Mortgage Rates Move Higher?

1. The Federal Reserve Raised Its Benchmark Rate

On September 16, the Federal Reserve increased the federal funds target range by one-quarter percentage point to 3.75%–4.00%.

The Fed does not directly set 30-year mortgage rates. However, changes in monetary policy can affect bond markets, inflation expectations and investor demand, which can ultimately influence mortgage pricing.

2. Inflation Remains an Important Risk

The Federal Reserve said inflation remains elevated. Investors pay close attention to inflation because higher inflation can reduce the real return earned on long-term bonds.

When bond investors demand higher yields, mortgage rates can move higher as well.

3. Longer-Term Treasury Yields Matter

Mortgage rates often move in the same general direction as longer-term Treasury yields, particularly the 10-year Treasury.

That does not mean the two move perfectly together, but bond-market volatility can quickly change mortgage pricing even when the Federal Reserve itself is not meeting.

What This Means for Chicago and Chicagoland Homebuyers

When rates rise, many buyers immediately focus on the headline interest rate. But the better question is:

What does today's market do to my actual monthly payment and buying power?

A buyer may have several levers available beyond simply waiting for rates to change:

• Adjust the purchase-price range.
• Compare FHA and conventional financing.
• Evaluate lender credits versus discount points.
• Use seller concessions when available.
• Compare fixed-rate and adjustable-rate structures.
• Review down-payment choices.
• Improve credit before locking a loan.
• Consider whether a temporary or permanent rate buydown makes sense.

What Does a 7% Mortgage Look Like?

Consider a hypothetical $400,000 30-year mortgage.

LOAN AMOUNT

$400,000

EXAMPLE RATE

7.03%

EST. PRINCIPAL + INTEREST

~$2,669/mo.

Example is for educational purposes only and includes principal and interest only. Property taxes, homeowners insurance, mortgage insurance, HOA dues and other costs are not included.

Buyers Are Responding to Higher Borrowing Costs

The Mortgage Bankers Association reported that total mortgage application volume fell 1.5% for the week ending September 18. Purchase applications were down 1% on a seasonally adjusted basis, while refinance applications fell 3%.

That does not mean every local market behaves the same way. Housing demand, inventory and seller motivation can vary significantly across Chicago, Cook County, Will County, DuPage County and the surrounding suburbs.

The Mortgage Lock-In Effect Is Still Important

Many existing homeowners still have mortgages originated when rates were considerably lower. That can make homeowners reluctant to sell and replace an older mortgage with a new loan carrying a higher rate.

Limited resale inventory can help support home prices in some communities, even while higher mortgage rates reduce affordability.

THE MORTGAGE MANIAC APPROACH

Don't Chase the Rate. Build the Mortgage Plan.

A headline mortgage rate tells only part of the story. Your mortgage strategy should consider the purchase price, monthly payment, cash needed at closing, credit profile, loan program and your longer-term financial goals.

Build your mortgage plan before you apply.

Buying or Refinancing in Chicagoland?

Before you make a decision based on a national headline rate, look at the numbers for your actual situation.

VISIT DAVIDBRAUNMLO.COM VIEW MORTGAGE RATE CENTER

Market data sources:

Freddie Mac Primary Mortgage Market Survey, September 24, 2026; NerdWallet mortgage-rate data, sourced from Zillow and updated September 25, 2026; Federal Reserve FOMC statement, September 16, 2026; Mortgage Bankers Association Weekly Mortgage Applications Survey, September 23, 2026.

Disclaimer: This article is for general educational and informational purposes only. Mortgage rates change frequently and vary based on borrower qualifications, loan program, property, credit, loan amount and other factors. Nothing contained here constitutes a commitment to lend, loan approval, preapproval or guarantee of financing.

David Braun
Mortgage Loan Officer | Chicagoland Mortgage Education
Mortgage Maniac OS
DavidBraunMLO.com

One Mortgage Library: Three Guides for Better Homebuyer Preparation

David Braun Mortgage Education Library

One Mortgage Library. Three Ways to Become Better Prepared.

Read one guide for your immediate need or use all three as a complete mortgage education path.

Meet David Braun: Mortgage Guidance Made Clear

Watch this short introduction to the three-book mortgage education library.

Watch this video on YouTube

Choose the guide that matches your mortgage journey

Book One · Complete Foundation

The 2026–2027 Homebuyer & Mortgage Guide

Real Answers. Smart Strategies. A Brighter Tomorrow.

Understand the journey from credit and budgeting through loan options, underwriting, appraisal and closing.

Read this first if: You want a broad, organized explanation of how homebuying and mortgage financing fit together.

Must-have for self-employed borrowers

Book Two · Income Strategy

The Self-Employed Mortgage Playbook

Learn how tax returns, deductions, ownership, cash flow and documentation may affect qualifying income.

Read this first if: Any meaningful part of your income comes from self-employment, business ownership, commissions or freelance work.

Book Three · Local FHA Roadmap

Chicagoland FHA Homebuying Guide

Explore FHA financing, property approval and the closing process while keeping Chicagoland taxes, payments and housing realities in view.

Read this first if: You are considering FHA financing for a home in Chicago or the surrounding suburbs.

The complete reading path

Choose the path that matches how you earn and how you plan to buy.

1

Learn the entire road

Begin with the Homebuyer & Mortgage Guide to understand the complete process and its vocabulary.

2

Self-employed? Start here immediately

Use the Self-Employed Mortgage Playbook when tax returns, deductions, ownership percentage or business structure may affect income analysis.

3

Study the program locally

Use the Chicagoland FHA Homebuying Guide when FHA financing and local property costs are part of your plan.

Mortgage experience translated into borrower education

David Braun began in the mortgage business in 1997. His books replace confusing industry language with direct explanations, practical preparation and stronger questions.

A book can explain the process. A personalized mortgage review applies that education to your income, assets, credit, debts, property taxes, goals and timeline.

Build your mortgage plan before you apply

Connect with David Braun for personalized mortgage guidance based on your goals and financial profile.

Call 312-656-0220 Explore David Braun MortgageOS

Educational information only. This page is not a rate quote, preapproval, commitment to lend or financial advice. Mortgage rates and program availability can change without notice. Equal Housing Opportunity. David Braun · Mortgage Loan Officer · NMLS 303007.

Mortgage Comparison Sites vs. a Local Loan Officer: What Homebuyers Should Know

Chicagoland Mortgage Education

Before You Click "See My Rate"

What Happens to Your Mortgage Information Online?

Mortgage comparison websites can be useful research tools. But before entering your phone number, email address, income and financial information, understand who may receive that information and why working directly with a local mortgage expert can be different.

Searching for mortgage rates online seems simple.

You enter your home price, down payment, credit range, email address and phone number because you want the answer to one question:

"What mortgage rate can I get?"

But before you click Submit, See Rates, Get Started or Get Matched, it is important to understand what may happen next.

Not Every Mortgage Website Works the Same Way

There is a common belief that entering your information into a large mortgage website automatically means your information will immediately be sold to many different lenders.

That is not necessarily true for every website.

Large mortgage comparison platforms may operate differently depending on the service you use, the choices you make and the disclosures you agree to.

At the same time, mortgage lead-generation companies do exist. Some online services collect consumer information and connect prospective borrowers with participating mortgage lenders or financial institutions.

Before entering your information:
Read the disclosure located near the submit button and understand which companies may receive your information and how they may contact you.

Ask These Questions Before You Submit Your Information

Who operates the website?

Who receives my contact information?

Am I choosing the lender I want to contact?

Could more than one company contact me?

Is this an actual mortgage quote or simply an estimate?

A Mortgage Is More Than an Interest Rate

One of the biggest mistakes a homebuyer can make is focusing only on the advertised interest rate.

Your mortgage pricing and available loan options can depend on many different factors, including:

Credit profile

Down payment

Debt-to-income ratio

Income structure

Employment history

Property type

Occupancy

Loan amount

Available assets

Property taxes

Homeowners insurance

Closing timeline

A website can calculate numbers.
An experienced mortgage professional can help you understand what those numbers mean.

A Rate Quote Is Not a Mortgage Strategy

Consider two hypothetical mortgage options.

Option A

Lower interest rate

Higher lender fees or discount points

Option B

Slightly higher interest rate

Lower upfront costs

Which mortgage is better?

There is no universal answer. It may depend on your available cash, monthly payment goals, how long you expect to own the property and your overall financial objectives.

Why Work With a Local Mortgage Expert?

The internet is an excellent place to research mortgages.

But researching a mortgage and having someone personally guide your transaction are two very different things.

When you work directly with me, you know who you are communicating with, who is reviewing your situation and who you can call when you have a question.

One Person to Call

Instead of wondering which call center representative you will speak with next, you have a direct relationship with a mortgage professional who understands your homebuying goals.

A Mortgage Plan Built Around You

A first-time homebuyer may need a completely different mortgage strategy than a self-employed business owner, move-up buyer or borrower trying to preserve cash after closing.

Your mortgage should be evaluated around your individual financial profile.

Chicagoland Knowledge Matters

Buying a home in Chicagoland involves more than calculating principal and interest.

Property taxes, homeowners insurance, condominium assessments, local housing costs and other expenses can significantly affect your total monthly housing payment.

Understanding the entire transaction can help you make a more informed decision before you make an offer.

Technology Should Help You — Not Replace the Conversation

I believe technology should make the mortgage process easier and more transparent.

That is why I created mortgage education tools and homebuyer resources at DavidBraunMLO.com.

You can research topics including:

• Mortgage payments
• Home affordability
• FHA financing
• Self-employed mortgage preparation
• Mortgage documents
• Closing costs
• Chicagoland housing information
• Mortgage market updates
• Homebuyer readiness

Don't Just Become a Lead.

Become a Client.

A lead is information entered into a computer. A client is a real person with a budget, goals, questions and a future home.

My Approach to Your Mortgage

When I work with a homebuyer, I want to understand more than what rate appears on a screen.

Where are you financially today?

What type of home are you trying to purchase?

What monthly payment are you comfortable with?

What mortgage programs may fit your situation?

What potential problems should we identify before you make an offer?

How can we make your mortgage process as organized as possible?

Shop Smart. Ask Questions. Protect Your Information.

Consumers should compare mortgage options and ask questions.

But before submitting personal information online, take a moment to understand who you are communicating with and what happens after you press the button.

Before submitting an online mortgage form, ask:

• Who will receive my information?
• Who may contact me?
• Am I choosing a specific mortgage company?
• Is the rate shown an estimate or an actual personalized quote?
• Are fees or discount points included?
• Who will help me if something goes wrong during the mortgage process?

Chicagoland Homebuyers

Build Your Mortgage Plan Before You Apply

Start with education. Understand your numbers. Ask questions. When you're ready for personalized mortgage guidance, contact me directly.

Explore DavidBraunMLO.com Call or Text 312-656-0220

David Braun

Mortgage Loan Officer

Regional Mortgage Corporation

NMLS #303007

312-656-0220

DavidBraunMLO.com

Your Home. Your Future. My Commitment.

Educational information only. This content is not a commitment to lend, mortgage preapproval, loan approval, rate lock or guarantee of financing. Mortgage programs, interest rates, fees, qualification requirements and terms are subject to change and individual borrower circumstances. Consumers should review the privacy policy and disclosures of any website before submitting personal or financial information.

The 2026–2027 Homebuyer & Mortgage Guide | David Braun

New 2026–2027 Homebuyer Resource

The 2026–2027 Homebuyer & Mortgage Guide

Buying a home is one of the biggest financial decisions most people will ever make. My new guide was created to help homebuyers understand the mortgage process, compare financing options and prepare before making an offer.

View the Book on Amazon Call David: 312-656-0220

Buy • Build • Refinance • Invest • Your Future

THE
2026–2027
HOMEBUYER &
MORTGAGE GUIDE

REAL ANSWERS. SMART STRATEGIES.
A BRIGHTER TOMORROW.

DAVID BRAUN

Mortgage Loan Officer
NMLS #303007

See the 2026–2027 Homebuyer & Mortgage Guide on Amazon

Knowledge Builds Brighter Tomorrows

Buying a home can feel overwhelming because borrowers are often introduced to unfamiliar mortgage terminology at the same time they are making major financial decisions.

I wrote The 2026–2027 Homebuyer & Mortgage Guide to make the process easier to understand and to give buyers a practical resource they can return to throughout their homebuying journey.

What You'll Learn Inside the Guide

Mortgage Preapproval

Learn what mortgage lenders review during preapproval and how preparing your financial information early can help you enter the housing market more informed.

Conventional Mortgages

Understand how conventional financing works and some of the important factors borrowers should consider when comparing conventional loan options.

FHA Financing

Learn the basics of FHA financing, including down-payment considerations, mortgage insurance and why FHA may be worth exploring for certain buyers.

VA & USDA Programs

Explore the basic structure of VA and USDA financing and why eligibility and property requirements matter.

Jumbo Mortgages

Learn why higher-balance mortgages can have different qualification, reserve and underwriting considerations.

Fixed & Adjustable Rates

Understand the difference between fixed-rate and adjustable-rate mortgages and the questions buyers should ask before selecting a structure.

Renovation & Construction

Learn about mortgage options that may be relevant when purchasing, renovating or building a property.

Non-QM Mortgage Options

Explore why borrowers with nontraditional income or financial circumstances may sometimes consider mortgage programs outside traditional agency financing.

APR, Points & Closing Costs

Learn why the lowest advertised interest rate does not automatically mean the lowest overall mortgage cost.

What to Avoid Before Closing

Learn why borrowers should be cautious about opening new credit, making large purchases or changing their financial circumstances before a mortgage closes.

Why I Wrote This Book

I began working in the mortgage industry in 1997.

Throughout my career, I have seen how much easier the mortgage process can become when a buyer understands the numbers before making decisions.

The mortgage process involves more than simply finding an interest rate.

A homebuyer may need to consider the loan program, down payment, property taxes, homeowners insurance, mortgage insurance, closing costs, APR, discount points and the total monthly housing expense.

“A stronger tomorrow starts at home.” David Braun

A Mortgage Is More Than a Rate

One of the most common questions homebuyers ask is:

"What is today's mortgage rate?"

That is an important question, but it is not the only question.

Two borrowers could receive very different mortgage terms based on factors such as credit profile, loan type, down payment, property characteristics and market conditions.

Buyers should also understand APR, lender costs, discount points, mortgage insurance and their estimated cash needed at closing.

Built for Chicagoland Homebuyers

Homebuying in the Chicago area has its own considerations.

Property taxes, homeowners insurance, HOA costs and home prices can vary substantially from one suburb or county to another.

Two homes with the same purchase price may produce very different monthly housing costs.

That is why I encourage buyers to evaluate the complete payment rather than simply focusing on the listing price.

Before you make an offer, understand the numbers.

Know your estimated payment, potential loan amount, estimated cash requirements and the mortgage programs that may be available based on your circumstances.

Preparation can help you ask better questions and make a more informed homebuying decision.

Who Should Read This Guide?

• First-time homebuyers
• Repeat homebuyers
• Buyers returning to the housing market
• Self-employed borrowers
• Buyers comparing FHA and conventional loans
• Veterans exploring VA financing
• Buyers considering renovation or construction
• Anyone who wants to understand mortgages before applying

Education Before Application

My philosophy is straightforward:

Understand the mortgage before signing the mortgage.

Homebuyers should be able to ask questions, understand their financing options and know what to expect before they are under pressure to close a transaction.

That is why I created both this guide and the educational resources available at DavidBraunMLO.com.

Get The 2026–2027 Homebuyer & Mortgage Guide

The guide is available now on Amazon.

View the Book on Amazon

Planning to Buy a Home?

Let's Review Your Mortgage Strategy Before You Make the Offer.

If you are purchasing a home in Chicago or the surrounding suburbs, I can help you review your estimated payment, cash requirements and available mortgage options.

Call 312-656-0220 Text David Explore DavidBraunMLO.com

Educational Disclosure: This article and book are provided for general educational purposes and are not a Loan Estimate, commitment to lend, mortgage approval, interest-rate quote or guarantee of financing.

Mortgage rates, APRs, closing costs, loan programs, seller-contribution limits, down-payment requirements and underwriting requirements may vary based on borrower qualifications, property characteristics, loan type and market conditions.

David Braun | Mortgage Loan Officer | NMLS #303007
Regional Mortgage Corporation
Chicagoland, Illinois
Call or Text: 312-656-0220
DavidBraunMLO.com

Equal Housing Opportunity.

Cook County and Chicagoland Housing Market Update: Fall 2026 to Spring 2027

Cook County and Surrounding Counties

Chicagoland Housing Market Update: Fall 2026 to Spring 2027

Prices are still rising, available homes remain limited and mortgage rates continue to shape what buyers can afford. Here is what Cook, DuPage, Will, Kane, Lake, McHenry and Kendall County buyers should know before making a move.

Market update prepared September 13, 2026

Start a Secure Application Call David: 312-656-0220

The market in one sentence

Chicagoland is still a competitive, low-inventory market, but buyers may find better negotiating opportunities during the slower fall and winter months than they will when spring demand returns.

This is not one uniform market. A well-priced home in a popular school district may receive several offers quickly, while a home with condition issues, high taxes or an ambitious asking price may sit longer and give the buyer room to negotiate.

$401,000Chicago Metro median price, July 2026

+6.8%Metro median price change from July 2025

−11.9%Metro homes for sale versus July 2025

6.76%Freddie Mac 30-year average, Sept. 10, 2026

What these numbers mean for buyers: waiting for prices to fall sharply is not a complete strategy. A better plan is to know your comfortable total payment, prepare financing early and compare each property’s price, taxes, insurance, association fees and expected maintenance.

Cook County and surrounding-county snapshot

The table below compares all home types using Redfin’s rolling three-month median through August 2026. August sales and median days on market are included to show current activity. Countywide figures are useful for direction, but they do not replace a neighborhood-level comparable-market analysis.

County	Median sale price	Year-over-year	August homes sold	Median days on market
Cook	$383,716	+5.1%	4,735	51
DuPage	$448,499	+4.8%	1,009	51
Will	$383,716	+5.7%	834	53
Kane	$407,564	+5.9%	624	50
Lake	$428,566	+4.4%	869	50
McHenry	$373,749	+2.7%	421	54
Kendall	$396,922	+2.0%	207	59

Source: Redfin calculations of MLS and public-record data. The median price is the midpoint of sales and is not the price of a “typical” house in every community.

What buyers should know by county

Cook County: Cook is the largest and most varied market in the region. Chicago condominiums, city single-family homes and suburban properties can behave very differently. Taxes, homeowner exemptions, association finances and special assessments can materially change the monthly-payment picture.

DuPage County: DuPage had the highest countywide median in this comparison. Buyers should be ready for strong competition on updated homes near transportation, established downtowns and sought-after school districts. Condominiums and townhomes may offer a lower purchase price, but association fees and reserve funding deserve careful review.

Will County: Will can offer more space and newer construction in many communities. Compare builder incentives with resale-home pricing carefully, and remember that taxes, homeowner-association costs and commute expenses can change the true affordability calculation.

Kane County: Kane showed one of the stronger year-over-year price gains in this comparison. Conditions can differ between the Fox Valley corridor, mature neighborhoods and newer developments, so buyers should study recent comparable sales instead of relying only on county averages.

Lake County: Lake’s wide range of communities and price points makes local research essential. Property taxes, proximity to commuter rail and lake-related location factors can all influence value and monthly cost.

McHenry County: McHenry had the lowest median price in this seven-county group and a more moderate year-over-year increase. Some buyers may find more house for the price, but should budget for commuting, utilities, wells, septic systems or acreage when those features apply.

Kendall County: Kendall had the longest median market time in this comparison. That can create negotiating openings on certain homes, although desirable newer properties may still move quickly. Review new-construction timelines, taxes and any special-service-area charges before committing.

Season-by-season buyer outlook

Fall 2026

Less seasonal activity, but inventory remains tight.

The Institute for Housing Studies projects Chicago Metro single-family sales to fall about 17% from July to October, following the normal seasonal pattern. It also projects October prices to remain almost 6% above October 2025.

• Watch listings that have missed the first wave of buyers.
• Ask about seller credits when the property and contract support them.
• Keep your preapproval current because good homes can still sell fast.

Winter 2026–2027

Potentially better leverage, with fewer choices.

This is an informed seasonal outlook, not a formal county forecast. Holiday schedules and winter weather usually reduce both listings and buyer traffic. Motivated sellers may be more willing to discuss repairs, timing or closing-cost assistance.

• Inspect roofs, drainage and mechanical systems carefully.
• Price insurance and taxes before finalizing the offer.
• Do not assume every winter seller is distressed or flexible.

Spring 2027

More listings may be matched by more competition.

Fannie Mae’s August 2026 national forecast calls for total home sales to rise 4.3% in 2027, with national home-price growth slowing to about 1.0%. It forecasts the 30-year mortgage rate averaging 6.8% in the first half of 2027. Chicagoland could perform differently.

• Finish income and asset documentation before touring seriously.
• Set a maximum payment before a multiple-offer situation.
• Use inspection, appraisal and financing terms thoughtfully.

Important: No forecast can predict a specific neighborhood, property or interest rate. The spring market will depend heavily on mortgage rates, new listings, employment conditions and buyer demand at that time.

Mortgage rates and the payment reality

Freddie Mac reported a national average 30-year fixed mortgage rate of 6.76% for the week ending September 10, 2026. That survey average is a market benchmark, not a rate quote. An individual rate can vary based on credit, loan type, down payment, occupancy, property type, points and other factors.

Illustrative principal-and-interest payment

$400,000 purchase price • 10% down • $360,000 loan • 30 years • 6.76%

Approximately $2,337 per month

Principal and interest only. This example excludes property taxes, homeowners insurance, mortgage insurance, association fees and closing costs. It is not an offer to lend and does not show APR.

In Chicagoland, property taxes can create a large difference between two similarly priced homes. Ask for the current tax bill, verify whether exemptions are in place and consider whether the assessment or exemptions may change after the purchase. Your approval should be based on the complete projected payment, not the principal-and-interest figure alone.

A practical buying plan for the next two seasons

1. Choose a comfortable payment range. Start with the monthly amount you can maintain, then work backward to a price range.
2. Prepare income, asset and credit documentation. Self-employed buyers should allow extra time for business and tax-return review.
3. Compare cash-to-close scenarios. Separate down payment, closing costs, reserves, repairs and moving expenses.
4. Review taxes property by property. Do not rely on a county average or an online estimate for the final payment.
5. Coordinate financing before writing an offer. A clear preapproval and responsive lender can matter when a seller is comparing contracts.
6. Recheck the numbers before signing. The right home should also fit the long-term budget.

Planning a Cook County or Chicagoland home purchase?

David Braun can help you review your price range, estimated payment and loan options before you begin making offers.

Start a Secure Application Call 312-656-0220 Text David

Data sources and methodology

• Illinois REALTORS: July 2026 market report
• Institute for Housing Studies at DePaul University: August 2026 Illinois housing forecast
• Freddie Mac Primary Mortgage Market Survey archive
• Fannie Mae Housing Forecast: August 2026
• County data: Cook, DuPage, Will, Kane, Lake, McHenry and Kendall.

Market data changes as new transactions are reported and may differ by source, property type and reporting period. Forecast statements are estimates, not guarantees.

David Braun, Mortgage Loan Officer • NMLS #303007 • 312-656-0220
Regional Mortgage Corporation • NMLS #112327
This material is for general educational purposes only and is not a commitment to lend. Loan programs, guidelines, rates and terms are subject to change and borrower qualification. Equal Housing Opportunity.

Chicagoland mortgage options, calculators and expert guidance for homebuyers, investors and self-employed borrowers from David Braun, NMLS #303007

Mortgage experience since 1997

A smarter path to homeownership.

Clear answers, practical strategy and personal mortgage guidance for homebuyers, homeowners, investors and self-employed borrowers throughout Chicagoland.

Start Your ApplicationCall or Text David

Since 1997Mortgage experience

NMLS #303007Licensed professional

ChicagolandLocal guidance

3 BooksBorrower education

Explore your options

Mortgage strategies built around real life

The right mortgage starts with your income, goals, property and complete financial picture.

Conventional Loans

Flexible purchase and refinance possibilities for qualified borrowers.

Explore your fit

FHA Financing

A practical option for eligible buyers who may benefit from FHA guidelines.

Read the FHA guide

VA Home Loans

Financing for eligible veterans, service members and qualifying surviving spouses.

Discuss eligibility

Non-QM Options

Alternative-documentation possibilities when traditional guidelines may not fit.

Review your scenario

Self-Employed Borrowers

Preparation for business owners, contractors and entrepreneurs with complex income.

Learn more

Investment and Refinance

Explore eligible strategies for property investment, cash flow, term or equity goals.

Ask David

Meet David Braun

Experience matters. Communication matters more.

Since 1997, David Braun has helped borrowers understand mortgage financing with straightforward education, careful preparation and a commitment to moving each qualified file toward the closing table.

Whether you are buying your first home, moving up, investing, refinancing or navigating self-employed income, David helps you focus on the documents and decisions that matter.

Plain-English answers

Personal loan strategy

Chicagoland knowledge

Closing-focused preparation

Call 312-656-0220Send a Request

A clear process

From questions to closing

Know what happens next and what to prepare.

STEP 1

Start the conversation

Share your goals, timing and property plans.

STEP 2

Review the full picture

Examine income, assets, credit, debt and documents.

STEP 3

Compare options

Review eligible structures, payments and cash needed.

STEP 4

Get prepared

Address documentation gaps before making an offer.

STEP 5

Apply with confidence

Submit your application through the secure process.

STEP 6

Move toward closing

Stay informed through underwriting and final approval.

Plan before you shop

Calculators and buyer tools

Create a useful starting point, then review the numbers with David.

Home Affordability Calculator

Estimate potential buying power using income, debts, cash and housing expenses.

Estimate affordability

Payment and Property Tax Guide

Estimate principal, interest, taxes and insurance with local considerations.

Calculate a payment

Personal Mortgage Review

Get help understanding debt-to-income, documentation and possible next steps.

Request a review

For business owners

Self-employed does not mean unqualified.

It means your mortgage file may require better planning. David helps business owners organize the story behind their numbers, identify potential obstacles and explore traditional or alternative-documentation options when appropriate.

Review My Scenario

Income and tax-return review

Business and personal statements

Documentation-readiness checklist

Non-QM possibilities

A clear plan before making an offer

Borrower education

Three practical mortgage guides

Written to help buyers replace uncertainty with preparation and confidence.

2026-2027 Homebuyer and Mortgage Guide

A roadmap for buying, building, refinancing and investing.

The Self-Employed Mortgage Playbook

Qualification, underwriting and preparation for business owners.

Chicagoland FHA Homebuying Guide

A plain-English roadmap to FHA financing and closing.

View All Books on Amazon

Ready for a clearer mortgage plan?

Start with a conversation. David will help you understand where you stand, what to prepare and which financing paths may deserve a closer look.

Start HereCall 312-656-0220

Educational information only and not a commitment to lend. Loan approval, programs, rates, terms and costs are subject to eligibility, underwriting, market conditions and change. Equal Housing Opportunity. David Braun, NMLS #303007.

3 Mortgage Books Every Chicagoland Homebuyer Should Read Before Buying

Three Books. One Clearer Path to Homeownership.

Read Before You Apply: David Braun's Mortgage Education Collection

Practical mortgage guidance for homebuyers, self-employed borrowers and FHA buyers throughout Chicago and the surrounding suburbs.

Explore the Books on Amazon Call David

A mortgage should never feel like a mystery.

Buying a home involves more than choosing a property and asking for an interest rate. Borrowers must understand income, credit, assets, debt, property taxes, insurance, loan programs, underwriting, appraisal, closing costs and timing.

David Braun began in the mortgage business in 1997. He created these three books to help borrowers replace confusion with preparation and approach important mortgage conversations with greater confidence.

Choose the guide that fits your situation

Start Here

Understand the Complete Mortgage Process

Begin with The 2026-2027 Homebuyer and Mortgage Guide.

Business Owners

Prepare a Complex Income Story

Use The Self-Employed Mortgage Playbook to prepare for underwriting.

Chicagoland FHA Buyers

Understand FHA Financing Locally

Read The Chicagoland FHA Homebuying Guide before making an offer.

Book One: The Complete Foundation

The 2026-2027 Homebuyer and Mortgage Guide

Real Answers. Smart Strategies. A Brighter Tomorrow.

This guide explains how the mortgage pieces fit together, from early financial preparation through application, property review, underwriting and closing.

What you will learn

Income and credit: How lenders evaluate income, credit, assets and monthly obligations.

Realistic budgeting: How to consider the complete housing payment, not only principal and interest.

Cash planning: How down payment, closing costs, prepaid expenses and reserves differ.

Loan comparisons: Why rates, points, lender credits and mortgage insurance all matter.

The closing path: What happens during preapproval, appraisal, underwriting and final approval.

Best for: first-time buyers, repeat buyers, refinancers and anyone who wants a clearer overview before applying.

Book Two: The Self-Employed Strategy

The Self-Employed Mortgage Playbook

Business owners may earn enough money but still face difficulty presenting income in the form mortgage underwriting requires. Business revenue is not automatically qualifying mortgage income, and tax deductions may affect the calculation.

What self-employed borrowers should prepare

Complete records: Gather personal and business tax returns, statements and ownership documents.

Income trends: Understand why stable, increasing and declining income may be reviewed differently.

Documented funds: Know where the down payment, closing costs and reserves will come from.

Clear explanations: Prepare for questions about large deposits, business changes or unusual financial activity.

Early review: Discuss the financial picture before a purchase contract creates deadlines.

Best for: business owners, entrepreneurs, independent contractors, 1099 earners and borrowers with complex income.

Book Three: The Local FHA Roadmap

The Chicagoland FHA Homebuying Guide

FHA financing may open doors for eligible buyers, but the borrower, property and complete transaction must satisfy applicable requirements. This guide explains the process through a Chicagoland lens.

What FHA buyers should understand

Qualification: How credit, income, assets and monthly obligations enter the review.

Mortgage insurance: Why it must be included in the complete payment.

Property review: How appraisal and property-condition issues can affect the transaction.

Closing funds: Why buyers must consider closing costs, prepaid taxes and insurance.

Local costs: How Chicagoland property taxes may influence buying power.

Best for: eligible first-time and repeat buyers considering FHA financing in Chicago or the surrounding suburbs.

Why Read All Three?

One book explains the road. The others prepare you for the turns.

Learn the Language

Understand rates, APR, mortgage insurance, escrow, reserves, underwriting and closing.

Find Questions Earlier

Missing records, unexplained deposits and property concerns are easier to address before contract deadlines.

Build a More Realistic Budget

Buying power depends on the complete payment, available cash and long-term comfort.

Become a Stronger Participant

An informed borrower can ask better questions, communicate clearly and respond more efficiently.

The Books Educate. The Conversation Personalizes.

Why call David Braun?

A book can explain the mortgage process. It cannot review your income, credit, assets, debts, property taxes, timing or goals.

David combines mortgage experience dating to 1997 with a commitment to borrower education and an understanding of Chicago-area housing costs. He helps turn general information into a conversation about your documented circumstances and possible next steps.

Call David at 312-656-0220

Do not wait until you find the house to learn how the mortgage works.

Read the books, write down your questions and call David for a personal mortgage conversation before you begin shopping or make an offer.

View the Books on Amazon Call 312-656-0220 Text David

David Braun | Mortgage Loan Officer | NMLS #303007 | Mortgage experience since 1997 | Serving Chicago and the surrounding suburbs

Important: These books and this page provide general educational information. They are not legal, tax or financial advice, an offer to lend, a rate quote, a commitment or a guarantee of qualification, approval or closing. Mortgage requirements and programs vary and may change. All loans are subject to application, verification, applicable program requirements, property review and final underwriting approval. Equal Housing Opportunity.

Non-QM Mortgages in Chicagoland: The Complete Borrower Guide

ALTERNATIVE MORTGAGE SOLUTIONS • CHICAGOLAND

Non-QM Mortgages: The Complete Guide to Qualifying Outside the Traditional Box

A different income story does not automatically end your home-financing conversation. The right documentation, loan structure and experienced guidance can reveal options a standard checklist may miss.

Call 312-656-0220Text David

What is a Non-QM mortgage?

Non-QM means Non-Qualified Mortgage. It describes a mortgage that does not meet the federal definition of a Qualified Mortgage, or QM. It does not automatically mean subprime, unregulated, no-documentation or unsafe.

Federal ability-to-repay rules generally require a lender to make a reasonable, good-faith determination that a borrower can repay a residential mortgage. A Non-QM lender may document that ability using a different method than a conventional agency loan—for example, eligible bank deposits, rental-property cash flow or qualifying assets—subject to that lender’s program rules.

The simplest explanation: A traditional mortgage usually asks whether your income fits a familiar agency formula. A Non-QM mortgage may ask whether another documented and supportable method better demonstrates your ability to repay.

Qualified Mortgage vs. Non-QM Mortgage

Question	Qualified Mortgage	Non-QM Mortgage
What does the label mean?	Meets a defined federal QM category and its requirements	Falls outside the QM definition or protection framework
Ability-to-repay review?	Yes	Generally yes for covered consumer transactions
Income approach	Typically traditional verified income under applicable program rules	May allow alternative documentation under lender guidelines
Pricing	Often lower when agency or government execution is available	Often higher to reflect added underwriting and investor risk
Down payment/reserves	Program-dependent	Often requires more equity, down payment or reserves
Guideline consistency	More standardized	Can vary significantly by lender and investor

Who may benefit from exploring Non-QM?

Non-QM is not automatically the best choice for someone who can qualify for an affordable conventional, FHA, VA or USDA mortgage. It is an alternative worth reviewing when the borrower’s real financial capacity is not captured well by traditional documentation.

01

Self-employed borrowers

Business owners whose taxable income is reduced by legitimate deductions, even though qualifying cash flow may be stronger.

02

Real-estate investors

Borrowers seeking to qualify an investment property primarily through eligible rental cash flow rather than personal income.

03

Asset-rich clients

Borrowers with substantial eligible assets but limited conventional monthly income.

04

Commission or irregular earners

Clients whose recent or variable earnings do not fit a standard historical-income calculation.

05

Recent credit-event borrowers

Some programs may consider borrowers after bankruptcy, foreclosure, short sale or other significant credit events sooner than agency waiting periods, with stricter terms.

06

Complex financial profiles

Multiple businesses, extensive investments, foreign income or other situations that require specialized review.

Common types of Non-QM programs

Availability and definitions vary by lender. The following are common market categories—not universal promises or standardized federal programs.

Bank-statement mortgages

These programs may use eligible personal or business bank deposits over a specified period to analyze self-employed income. Underwriters generally review recurring deposits, transfers, unusual large deposits, business ownership and an expense factor or expense documentation. Gross deposits are not automatically treated as qualifying income.

Profit-and-loss or alternative self-employed documentation

Some programs may use an eligible profit-and-loss statement, sometimes paired with bank statements, verification from a qualified third party or additional business documentation. Requirements depend heavily on the lender.

DSCR investment-property loans

A debt-service-coverage-ratio program compares eligible property rent or market rent with the property’s qualifying housing expense. The exact formula, minimum ratio and treatment of taxes, insurance and association dues vary. These loans are generally designed for non-owner-occupied investment properties, not a primary residence.

Asset-depletion or asset-utilization loans

Eligible assets may be converted into a calculated monthly income stream using the lender’s formula. The lender may discount certain accounts, subtract funds needed for closing and reserves, and restrict which assets qualify.

1099-only or wage-earner alternative programs

Some lenders offer specialized approaches for eligible independent contractors or borrowers with particular compensation structures. A 1099 by itself is not a guarantee of qualification; continuity, expenses and other documentation may still matter.

Recent-credit-event programs

Certain Non-QM programs may allow shorter seasoning after a significant credit event than standard agency programs. Expect closer scrutiny, higher pricing, greater equity requirements or reserves. The lender will still evaluate current credit behavior and the complete risk profile.

Foreign-national and ITIN-oriented options

Specialized programs may serve eligible borrowers whose documentation, residency or credit history does not fit standard agency requirements. Identification, visa or residency status, asset sourcing, credit references and property-use rules can be highly program-specific.

What Non-QM is not

Not “no questions asked.” Expect documentation and underwriting.

Not guaranteed approval. Every program has credit, income or cash-flow, asset, property and compliance requirements.

Not always easier. Alternative documentation can be more detailed and lender-specific.

Not automatically the cheapest option. Rates, points and down-payment requirements are often higher.

Not a way to hide information. Complete and accurate disclosure is essential.

The costs and tradeoffs to understand

• Higher interest rates or APRs: Pricing commonly reflects the loan’s added risk and limited secondary-market execution.
• More points or lender charges: Compare the complete cost, not only the note rate.
• Larger down payment: Many programs require more borrower equity than mainstream options.
• Reserve requirements: Several months of qualifying housing payments may need to remain after closing.
• Prepayment penalties: These may be present on certain eligible business-purpose investment-property loans where permitted. Review the amount, period and triggering events carefully. Consumer-purpose restrictions are different.
• Fewer lender options: Guidelines can change and a scenario acceptable to one investor may not fit another.
• Property restrictions: Condominiums, rural properties, mixed-use homes, short-term rentals or unusual properties may receive additional review.

THE NON-QM PATH TO CLOSING

How the process typically works

1. Discovery call

   Define the property, occupancy, timeline, income story, assets, credit and long-term objective.

2. Program comparison

   First determine whether a mainstream loan works. If not, compare suitable Non-QM approaches and tradeoffs.

3. Documentation review

   Collect complete bank statements, business records, leases, asset statements and explanations required by the selected program.

4. Prequalification or preapproval review

   Evaluate the scenario under the actual lender guidelines. A prequalification is not final approval.

5. Application and disclosures

   Complete an accurate application and review the Loan Estimate, rate structure, APR, costs and cash to close.

6. Property review

   The lender obtains an appraisal or other required valuation and reviews title, insurance, property condition and eligibility.

7. Underwriting and conditions

   Respond quickly and completely. Updated documents, explanations and verification may be required.

8. Final approval and closing

   After all conditions are cleared, review the Closing Disclosure and final terms before signing.

Documents to prepare

Personal

Identification, housing history, credit authorization, explanation letters when needed and current debt information.

Income or cash flow

Bank statements, tax returns if required, 1099s, profit-and-loss statements, leases or rent documentation depending on the program.

Assets

Statements documenting down payment, closing funds and reserves, plus acceptable sourcing for significant deposits.

Business

Ownership verification, business license or registration, operating history and other lender-required records.

Questions every borrower should ask

• Why is this Non-QM program being recommended instead of a conventional or government-backed option?
• Which exact documentation method will be used to calculate my qualifying income or property cash flow?
• What deposits, assets or rents are excluded from the calculation?
• What are the rate, APR, points, lender fees and estimated cash to close?
• Is the interest rate fixed or adjustable? If adjustable, how and when can it change?
• Is there a prepayment penalty, and is it legally permitted for this transaction?
• How many months of reserves are required?
• What property, appraisal or condominium restrictions apply?
• What conditions must be satisfied before final approval?
• What could cause the program, pricing or approval decision to change?

How to compare Non-QM offers responsibly

Compare offers made at approximately the same time and with the same loan amount, down payment, occupancy, property type and lock period. Review the Loan Estimate—not a verbal rate alone. Pay attention to APR, points, lender credits, origination charges, mortgage terms, any adjustable-rate features, cash to close and potential prepayment provisions.

WHY DAVID BRAUN?

Local experience that helps organize a complex mortgage story

David began in the mortgage business in 1997. His value is not a promise to force every loan to closing; it is the experience to ask the right questions early, explain the tradeoffs in plain English and help match a borrower’s documented financial profile with an appropriate lending path.

For Chicagoland borrowers, local knowledge matters. Property taxes can shift the total payment dramatically between communities. Condominium characteristics, investment-property rents, insurance and closing timelines can also affect the strategy. David helps connect those local realities to the mortgage analysis.

• Personal scenario review
• Self-employed borrower education
• Complete-payment planning
• Clear documentation roadmap
• Program and cost comparison
• Communication through the process

YOUR FINANCIAL STORY DESERVES A COMPLETE REVIEW

Do not disqualify yourself before the conversation starts.

If traditional mortgage guidelines do not reflect your income, assets or investment strategy, contact David Braun to explore whether a responsible Non-QM option may fit.

Call 312-656-0220Text David Now

David Braun • Mortgage Loan Officer • NMLS #303007 • Mortgage experience since 1997 • Serving Chicago and the surrounding suburbs

Non-QM mortgage FAQ

Are Non-QM mortgages legal?

Yes. Non-QM is a recognized category outside the Qualified Mortgage definition. Covered lenders generally remain subject to ability-to-repay and other applicable federal and state requirements.

Is Non-QM the same as subprime?

No. “Non-QM” describes regulatory classification, not one credit grade. Programs cover a range of borrowers and risk profiles.

Can I qualify without tax returns?

Some programs may use eligible alternative documentation, but that does not mean no documentation. The lender must apply its program and ability-to-repay requirements.

Are Non-QM rates higher?

They often are, but pricing depends on credit, equity, documentation, occupancy, property type, reserves and market conditions.

Can I refinance a Non-QM loan later?

Potentially, if you qualify and refinancing makes financial sense at that time. Future approval, value and pricing cannot be guaranteed. Include any prepayment penalty and closing costs in the analysis.

How long does a Non-QM closing take?

Timing varies by lender, appraisal, title, documentation quality and complexity. Complete records and fast responses can help, but no closing date should be guaranteed before all conditions are satisfied.

Authoritative consumer resources

• CFPB: What is a Qualified Mortgage?
• CFPB: What is the ability-to-repay rule?
• CFPB: Ability-to-Repay and Qualified Mortgage resources

Important: This article is general educational information, not legal, tax or financial advice, an offer to lend, a commitment, a rate quote or a guarantee of approval or closing. Non-QM programs, documentation methods, rates, costs, property rules and eligibility vary by lender and may change without notice. All loans are subject to application, verification, underwriting, appraisal where required and final approval. Consult qualified legal and tax professionals about your circumstances. Equal Housing Opportunity.