Chicago FHA 203k streamline mortgage

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,…

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How Can a Chicago 203k Renovation Loan Save You Money?

  If you’re looking into buying a home in the Chicago area, a 203k renovation loan can end up helping you save money. If you’re looking to buy with an FHA 203k loan, it will allow you to buy a home, and add in some improvements at the same time. While it costs a bit more to buy with a 203k loan than a traditional mortgage, you can still save a lot of money if you know what you’re doing. When a Renovation Loan is Appropriate It comes down to your plans for the home after you buy. Many folks think that a renovation loan is only for buying a run-down property or a foreclosure, and homes that haven’t been cared for very well. However, there are many homes in good condition that are simply out of style, such as homes occupied by older folks that need some updating, that…

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Chicago Area FHA 203K – How Do You Start A Mortgage Pre-Approval for an FHA 203k Rehab Loan?

      An FHA 203k rehab loan is a great way to buy a new home and add in the cost of repairs and improvements at the same time. With an FHA 203k rehab mortgage, you can take a rough fixer upper, and turn it into a home you are proud to own – all with as little as a 3.5% down payment based on the purchase price plus the cost of repairs. One question I get asked a lot is, what all is needed to qualify for this program? Because this program is somewhat unique, and it fits a need that no other loan does, most people think that it is much harder to qualify for an FHA 203k renovation loan than it would be to qualify for a conventional mortgage. The truth is that qualifying for an FHA 203k is the same as qualifying for any other…

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Chicago FHA 203k – How Do You Pick the Contractor You Will Use to Do Your Repairs and Renovations?

The FHA 203k renovation loan doesn’t force you into working with contractors on an approved list, you will be able to pick the contractor yourself. Being able to pick your own contractor means that you can use contractors referred to you by friends or relatives who have had good experiences with similar projects and  you can negotiate for the best price because you aren’t locked in to a list of high cost contractors. You do have a lot of freedom in who you choose, but there are specific requirements that will need to be met, and these requirements are put in for your protection. The FHA 203k direct lender approves the contractors based on specific guidelines and documentation. Here is what is required in order for a contractor to be approved for a Chicago area FHA 203K rehab loan: The contractor will have to complete a profile and include a…

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Chicago FHA 203k – How Are the Repair Funds Dispersed, and How Long Does It Take Before the Contractor is Paid?

If you are buying a home that needs repairs or looking at a major construction program and considering the FHA 203k rehab loan in the Chicago area, there is one question you need to ask your lender – How will the contractor be paid, and how long will it take before the funds are dispersed? This is a major issue and one that too often is a surprise to both the borrower, and the contractor who handles the repairs. Many of the FHA 203k rehab loans in the Chicago area are made by brokers, or are brokered out by mortgage companies that start the loan file and may even close the loan in their name, but who will then sell the loan off to the final lender right after closing. The problem here is that it is often set up so that no money is given out until the end…

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