March 2011

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…

Read More

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

      Withhome inventory low, FHA 203k , and HomeStyle rehab mortgages are becoming quite popular. It makes sense because these loans allow you to buy a home that needs some work at a discount, and roll the needed repairs into the mortgage. With as little as 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 renovation mortgages, 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 renovation mortgages in different…

Read More

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…

Read More

Chicago, Illinois FHA 203k Mortgage -What Realtors Need to Know When Working With an FHA 203k Loan

      Here in the Chicago area most Realtors have never worked with an FHA 203k rehab and renovation mortgage. This is a great mortgage for many uses, but even more so now, with inventory of good, ready to move in properties so short. Some properties are true fixer-uppers (most Realtors still think that an all cash offer is the only option in order for these properties to sell), others might just need a new kitchen, bathrooms, or maybe new flooring. I know some Realtors don’t want to even show these homes to their buyers because they think that these properties are too much work for their buyer, and that even if they could get financing, it would not be worth it. The truth is, a big portion of the buyers in the market today are looking for the bargains, and this often means foreclosed properties, and out dated homes and even if…

Read More