Chicago area FHA 203k Renovation Mortgage

Training Chicago Area Realtors on how to work with FHA 203k and Homestyle Renovation Loans

One of the biggest issues for buyers looking for new homes in the Chicago area, has been the shortage of inventory for quality properties. Homes that show well and are priced right have been selling quickly all year long. But there are a lot of other properties that may be in good neighborhoods, that are sitting on the market a lot longer. These are the properties that might have some issues. Sometimes it is deferred maintenance, sometimes the home is just outdated and doesn’t show well. Either way, most borrowers are looking for homes that are in move in condition, and these homes don’t even show up on their radar. But these homes can be a great opportunity for buyers with imagination. These homes are neglected because they don’t have the amenities today’s buyers are looking for, but with a renovation loan, you can fix and improve a home, changing it into the home you…

Read More

What is the Process and Timeline for Getting a Chicago Area Renovation Loan?

  If you are looking to buy a home in the Chicago area, you probably know that the market is tight. There are a lot of buyers looking for the same types of property (well maintained, up to date homes that are priced right), and whenever a new listing comes on the market, there is a waiting line of buyers ready to view it. And often, ready to make offers. At the same time, there are a lot of homes that just don’t get as much love and respect. These are older homes, homes that haven’t been updated, need some work or just don’t have the curb appeal that buyers are looking for. It’s not unusual for these homes to stay on the market longer, and sell for less. But these ugly ducklings can be swans in disguise. If you are open to considering homes that might need some work,…

Read More

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…

Read More

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…

Read More

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…

Read More

Simple Guide to the Chicago 203k Renovation Loan

  If you’re out looking for a home, you’ve probably noticed that inventories are tight: there are not as many homes available as you would like, and the homes in good locations at the right price will go fast, often with multiple offers. Similarly, there are many homes that sit on the market for a long time due to their condition: perhaps due to the home not being updated in many years, or due to a physical problem with the home that needs to be fixed before occupancy. In these cases, a simple fix for this problem is the renovation loan. Buying the Ugly Duckling Sometimes, it makes sense to buy what many would call the ‘ugly duckling’ – a home that needs some updating or several repairs. An updated home in a good location will often be very expensive, and a discounted ‘ugly duckling’ home can be a better…

Read More

Chicago Renovation Loans: How Long to Close?

  How long does it take to close on a renovation loan? Many folks have heard horror stories on renovation loans, which often times can take 90 or 120 days to close. Realtors often discourage the use of renovation loans because they never close. However, renovation loans can close quickly when set up appropriately. Two main factors influence the amount of time renovation loans will take to close: making sure the loan officer gives good advice on an appropriate time schedule, and you doing your homework. When doing a renovation loan, you will go and find a property and get a contract on the home, and then determine what work needs to be done to the home. Once under contract, your list of repairs and upgrades needs to be priced out, which involves getting quotes from good contractors that will do the work. Coming up with a list of what…

Read More

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…

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