FHA Chicago Area Max Loan Limits Are Officially Raised Back to their Previous Highs

Last month congress passed a bill which restored the temporary high loan limits for FHA mortgages. The news at the time was for the higher cost areas, but last week week HUD made it official and the higher temporary loan limits are now in place across the country and these higher limits  will be set until the end of 2012. This is good news for home buyers who are buying larger homes or smaller apartment buildings (2 to 4 unit buildings), since it allows these buyers to purchase with just a low 3.5% down payment, and it the more lenient qualifying standards FHA offers. It is also good for the housing market in general because more qualified buyers means a stronger and more robust market. These loan limits were originally put in as part of the economic stimulus bill as a way to increase financing options and help stabilize the…

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Chicago Area Realtors – Seminar– How to Create More Business Working With Rehab and Renovation Properties

Do you have listings that will not sell? Are your borrowers looking at an older home that need work? Do you have listings that need updating or repairs? Renovation Loans can help you sell more homes and increase your commission! Attend this exclusive event on how to sell more homes using Renovation Loans offered by Prospect Mortgage, the nation’s No. 3 lender in 203K Renovation Loan origination. Renovation Loans are ideal for buyers who want to remodel an older home or buy a fixer-upper, and YOU can benefit from this growing market! This seminar includes: Everything you need to know about selling more homes with Renovation Loans. Why Renovation Loans are EASY for Agents and buyers. Why more buyers are choosing renovation loans and need Agents who can help. How to grow your business with Renovation Loans. How to market “fixer-uppers” using attractive Renovation Loan options. Join New York Times…

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Chicago Area Realtors – Seminar– How to Create More Business Working With Rehab and Renovation Properties

Do you have listings that will not sell? Are your borrowers looking at an older home that need work? Do you have listings that need updating or repairs? Renovation Loans can help you sell more homes and increase your commission! Attend this exclusive event on how to sell more homes using Renovation Loans offered by Prospect Mortgage, the nation’s No. 3 lender in 203K Renovation Loan origination. Renovation Loans are ideal for buyers who want to remodel an older home or buy a fixer-upper, and YOU can benefit from this growing market! This seminar includes: Everything you need to know about selling more homes with Renovation Loans. Why Renovation Loans are EASY for Agents and buyers. Why more buyers are choosing renovation loans and need Agents who can help. How to grow your business with Renovation Loans. How to market “fixer-uppers” using attractive Renovation Loan options. Join New York Times…

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Chicago FHA 203k Mortgage Myth – the FHA 203k Rehab Mortgage is Capped at $35,000 in Repairs and Improvements

I hear on a regular basis from borrowers and Realtors, that they were interested in a particular home, but the home couldn’t work, or it could only be bought on a cash offer because it needed too much work. When I ask if they have considered the FHA 203k rehab loan, a common answer I hear is that they couldn’t use this because the property required more than the $35,000 of work that the FHA 203k allows. BZZZZZ. Wrong answer. There are two types of Chicago are FHA 203k rehab and renovation mortgages. One is a streamline FHA 203k, which is capped at a total of $35,000. But there is another loan, the full or consultant FHA 203k, which you can use for major projects. This loan can go as high as the FHA lending limits allow. So it is possible to buy a home for $50,000 and put $100,000…

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Chicago Area Homepath Renovation Loans – Financing for Purchase and Repairs for Fannie Mae Foreclosures

One of the best kept secrets for many real estate agents, home buyers and investors, is the Homepath loan. This is a type of mortgage specifically for purchasing Fannie Mae foreclosed homes, and there are  some great advantages to buying with this program. These foreclosures are priced right from the start, you can buy with a low down payment (3% down for owner occupants and 15% down for investors) and there is no mortgage insurance. Now we have a new type of Homepath loan, the Homepath Renovation loan. This mortgage allows buyers to purchase a Fannie Mae foreclosure and add the cost of repairs and improvements into one loan, with one closing. The biggest problem when buying a foreclosure is often that the home needs work, either repairs immediately, or deferred maintenance. This mortgage is modeled after the Streamlined FHA 203k, and the Homepath Renovation loan allows you to add…

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Chicago Area FHA 203k – What Questions Should You Ask Before Starting an FHA 203k Rehab Loan?

The FHA 203k rehab and renovation loan is still one of the best kept secrets in the real estate market today. A recent report showed that nearly half of the sales now are distressed properties, that is either foreclosed properties or short sales . With each of these situations, you are buying the property “as is”. It is likely that there is at the least some deferred maintenance in the home, and a good percentage of the foreclosed properties are fixer-uppers which need work just to be habitable. The FHA 203k rehab and renovation loan is the perfect solution for these homes. But the FHA 203k mortgage in the Chicago area is also a great solution for homes that are livable as they are, but where modernization or general improvements are needed. It is a lot cheaper to finance the improvements as part of the original mortgage than to put…

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Chicago FHA 203K – When You See Cash Offer Only on a Listing, Think FHA 203K

With all the distressed properties on the market, a good portion are inevitably going to have issues with the property condition. If you are looking in the MLS, at Realtor.com or one of the local search sites, you will find that some of these homes are marked as cash only. When you see cash only this means that the property has serious problems of one form or another, and that the seller, or the seller’s agent, doesn’t think it will pass as acceptable to get either conventional or FHA financing. This means that the overall pool of available offers for this property has shrunk down to the investors who are ready and willing to buy with all their own cash. These investors are looking for big returns and they will take on a project that needs a lot of work, but it has to be at a price where they…

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Chicago Area Realtors – FHA 203k Rehab Loan Seminar on April 7th, How to Sell and Close More Transactions in a Foreclosure Dominated Market

A fact of life in the housing market today is that a substantial amount of the inventory for sale is made up of foreclosed homes and pre-foreclosed or short sale homes. One of the biggest issues for buyers of these properties is that the condition of the homes can range from move-in ready to ready to be knocked down, and a good portion of the homes available will need some work. Sometimes this work is required before anyone can even get the loan. Other times the home is in livable condition, but needs modernizing and upgrades before most buyers would consider it a place they would want to call home. Usually the best and often only financing option for these homes is the FHA 203k renovation loan. This loan allows the buyer to buy a home and add the cost of repairs and improvements into the purchase price. Because this…

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Chicago FHA 203k – What You Need to Ask Your Lender Before Starting an FHA 203k Rehab Loan

With so many foreclosures on the market, FHA 203k rehab mortgages are becoming quite popular. It makes sense because this loan allows you to buy a fixer-upper at a discount, and roll the needed repairs into the mortgage. With a minimum of just 3.5% for the down payment, based on the purchase price plus the improvements, this mortgage fits the needs of many home buyers. As more people learn about the advantages of this mortgage, more mortgage brokers and mortgage lenders are seeing the need and starting to offer the FHA 203k to their clients. But having the loan available and being able to close the loan are often two different things. The FHA 203k rehab and renovation mortgage is more complicated than standard mortgages, and because their are more moving parts, if something changes the loan could too easily get derailed. Different lenders handle these mortgages in different ways,…

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Chicago Illinois FHA 203k – Why First Time Home Buyers Should be Pre-Approved by a Lender Who Works With Rehab Mortgages

The first step for anyone who plans to buy a home, is to get pre-approved for a mortgage. This means having a good loan officer go over your income, assets and credit profile, and give you a range of how much of a home and a mortgage payment you can afford. Part of the pre-approval process is determining what the best type of mortgage is for you and your needs. If you have a larger down payment with great credit and good income a conventional mortgage is usually the best way to go. For those who are scraping to get the money they need for closing, FHA is often the best program. But the pre-approval ignores one of the biggest factors in getting a mortgage, the property you are buying. The property you buy is a big factor in your approval, especially now when so much of the market of…

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