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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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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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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…

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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…

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Chicago FHA 203k – The Biggest Concern for Realtors and Sellers When Working With an FHA 203k – Will the Loan actually Close?

        A common question I hear when one of my clients presents an offer for an FHA 203k rehab loan, is yes, but do these things actually close? The answer I always give is Yes. The Chicago area FHA 203k rehab and renovation loan is a great product and we close them regularly. But the reason this is such a common question is because so many contracts are written with an FHA 203k and something falls apart before it gets to closing. This leads to a lot of frustration on the part of Realtors and sellers, because no one gets paid if the mortgage doesn’t close. The problem isn’t with the mortgage itself, the main issue is more often about how the loan is handled, and who is handling the loan. The truth is, most loan officers have never worked with an FHA 203k before, and most…

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