FHA 203k

What Questions Should You Ask Your Lender When Applying for a Loan?

          When shopping for Chicago Area renovation loans and FHA 203k renovation loans, what questions should you ask your lender to be sure they are qualified and ensure a smooth process? Renovation loans are popular because they are flexible: you can take a property in need of a lot of work, and turn it into a good-as-new home, or find a home needing minor updates and make it the way you want. Checking Lender Experience While many lenders say they do renovation loans, it is important to find out how many they’ve actually done. One of the most important things to determine is the amount of experience your lender has with renovation loans. Renovation loans are different than traditional mortgages. Not only does the borrower need to be approved, but contractors doing the renovations need to be involved as well. Everything that needs to be done…

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What Can You Do with a Chicago Renovation Loan?

      What specifically are you allowed to do with a renovation loan? The real question is, “What can’t you do?” because there is a lot of flexibility with this type of loan. What can you do with a Chicago Area Renovation Mortgage? There are many different ways to use this program. There are three basic types to look at: FHA 203k renovation loan: a great way to get a government-insured property with as little as 3.5% down, including costs of repairs Homestyle renovation loan: better if you have a bit more of a down payment VA renovation loan: includes special benefits for veterans and disabled veterans The good thing about renovation loans is their flexibility: you can use it for something that just needs a little bit of work or a home that needs a tremendous amount of work. It doesn’t matter what the condition of the property…

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What Is the Mortgage Appraisal Process?

                    Today, we are going to talk about appraisals and the mortgage appraisal process. When you go to get a mortgage, lenders approve YOU, and your specific financial situation. A lender will begin by looking at your credit, your income and your debts, the sources of your income, and the specific property you are buying or refinancing. The lender will check that the cost of the home is where you need it to be from a financial standpoint, and that it comes in at the right value by doing an appraisal. Finding an Appraiser When doing an appraisal, a qualified appraiser is brought in to appraise the value of the home. Previously, we could pick the appraisers that we brought in to do the appraisal that knew the area well. However, today there is more of a blind system: appraisers are…

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Are You Thinking About Buying a Chicago Area Home in 2017?

                    With 2016 behind us, and the beginning of 2017 underway, many folks take a step back and look at their New Year’s resolutions and what they would like to accomplish in the coming year. While reflecting on their aspirations for the year, many renters and first-time buyers have the goal of purchasing a new home in 2017. If buying a home is one of your New Year’s resolutions, take some time to figure out and assess where you are now, and where you need to be in order to buy a home. Doing an assessment with a qualified mortgage loan officer will help you determine where you are at financially, and things you can to do to help you prepare to buy a home. Examining Your Savings, Debt and Credit An important aspect of your financial picture is your amount…

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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 FHA 203k – What Are the Steps to Close an FHA 203k Mortgage?

FHA 203k renovation loans are one of the best kept secrets in the market today. When I say that, it’s not because no one has ever heard of them, most Realtors know about the Chicago FHA 203k mortgage, and so do many builders. But it is still a secret because too many people hear about them and think they aren’t a real option. They have heard horror stories about how difficult these loans are or how the Chicago FHA 203k renovation loan is available, but they never close. I have one word in response to this. Baloney. The Chicago area FHA 203k renovation loan is a great mortgage program and the only way to buy many homes on the market now. a lot of these horror stories are true, but it isn’t because the loan is the problem, it is because too often, no one involved in getting the mortgage…

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The Chicago FHA 203k Blog is Now Up and Running

Welcome to Chicago 203k, my new blog on everything to do with the FHA 203k rehab loan. This loan is a great way to buy a home in a rough condition, and turn it into a home you are proud to have your friends and family over to. It is a great way to save money and build home equity, and if you are buying a foreclosed home or a home with major property conditions, it may be the only way to finance the property (the other option is to pay all cash). This is part of FHA, so this loan is available with a low down payment, affordable rates and you don’t have to have perfect credit in order to qualify. This is a great program, but you need to know what you are getting into. If you do an internet search on FHA 203ks, you are sure to…

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