April 2011

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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