FHA 203k mortgages

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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How to Find the Right Lender for a Chicago FHA 203k Renovation Loan

      A renovation loan, or FHA 203k renovation loan, is a great tool for buying a home that needs some repairs or improvements to raise the value of the home. Renovation loans allow buyers to incorporate renovation costs into the mortgage in order to improve the home and raise its value immediately, rather than waiting to renovate years down the road. In addition, this can save money in comparison to a second mortgage or use credit cards to make improvements. When shopping for a lender, what questions do you need to ask when considering a renovation loan, or FHA 203k renovation loan? How Experienced Is the Lender? How many renovation loans has the lender done in the past? There are many moving parts to a renovation loan: you have to approve the situation, know the timing of everything, and know what is allowable under the terms of the…

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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 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…

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Chicago, Illinois FHA 203k Mortgage -What Realtors Need to Know When Working With an FHA 203k Loan

      Here in the Chicago area most Realtors have never worked with an FHA 203k rehab and renovation mortgage. This is a great mortgage for many uses, but even more so now, with inventory of good, ready to move in properties so short. Some properties are true fixer-uppers (most Realtors still think that an all cash offer is the only option in order for these properties to sell), others might just need a new kitchen, bathrooms, or maybe new flooring. I know some Realtors don’t want to even show these homes to their buyers because they think that these properties are too much work for their buyer, and that even if they could get financing, it would not be worth it. The truth is, a big portion of the buyers in the market today are looking for the bargains, and this often means foreclosed properties, and out dated homes and even if…

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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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Chicago FHA 203k Mortgages – What is the Difference Between a Streamline and a Consultant FHA 203k Renovation Loan?

There are two types of Chicago FHA 203k mortgages, the Streamline 203k and the Consultant 203k. The Streamline FHA 203k has been the most popular version in recent years because it is a great solution for smaller jobs, and the approval process is designed to be quick and, as the name says, streamlined. Streamline FHA 203ks are available for up to $35,000 in total costs, which includes the repairs and renovations plus a contingency reserve. It is amazing how much work can be done with $35,000. This is enough to remodel a kitchen, fix up a basement, in some cases both can be done for this budget. The Streamline FHA 203k is a very flexible loan, and your biggest limit is your imagination with what you can do. You can’t use the Streamline FHA 203k for structural problems, though. These can only be done as Consultant loans. The Chicago Consultant…

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