FHA 203k Rehab Loans in Chicago Illinois Mortgage Guidelines
This BLOG On FHA 203k Rehab Loans in Chicago Illinois Mortgage Guidelines Was UPDATED On November 2nd, 2018
FHA 203k Rehab Loans in Chicago Illinois is one of the most popular mortgage loan programs with The Gustan Cho Team at Loan Cabin Inc.
- FHA 203k Rehab Loans in Chicago Illinois are great loan product when used correctly
- It is for both home buyers buying a fixer-upper or a homeowner needing rehab on their home and needing an FHA 203k Rehab Mortgage
- This will be the third in a series of articles that will attempt to give an honest and transparent assessment of several critical moving parts that make up FHA 203k Rehab Loans
In this article, we will discuss and cover using FHA 203k loans for buying fixer-upper homes.
Types Of FHA 203k Rehab Loans In Chicago Illinois
There are two types of FHA 203k Rehab Loans in Chicago Illinois.
Here are the two types of 203k Rehab Loan Programs:
- Streamlined FHA 203k Rehab Loans
- Standard FHA 203k Rehab Loans which is also called the Full FHA 203k Loans
The Streamlined 203k Rehab Loans are limited to the type of work the homeowner can do.
203k Streamline Mortgage Guidelines
Here is the type of work you can do with a Streamlined FHA 203k Loan Program:
- Limitation up to $35,000 construction budget
- Cannot do any structural repairs such as room additions or combining two bedrooms into one
The following types of work can be done with 203k Streamlines:
- Bathrooms, HVAC repairs, and replacement
- Electrical and plumbing updates/replacement/repairs can be covered
Full Standard FHA 203k Rehab Loans
With the Full/Standard FHA 203k Loan Program, there is no construction loan max:
- This holds true as long as the overall loan does not exceed the FHA Loan Limits in Chicago and the six counties of the Chicagoland Area
- Chicago and its six counties have higher FHA Loan Limits than the rest of the state of Illinois
Here are the six counties of the Chicagoland Area where the FHA Loan Limits of Chicago and its suburbs applies for FHA 203k Rehab Loans in Chicago Illinois:
- Cook County, Illinois
- Lake County, Illinois
- Will County, Illinois
- Kane County, Illinois
- DuPage County, Illinois
- McHenry County, Illinois
The above six counties of Illinois have FHA 203k Rehab Loan Limits of $365,700 on single-family homes. This is substantially higher than the rest of the counties in the state of Illinois.
What Types Of Properties Can I Utilize With FHA 203k Rehab Loans in Chicago Illinois
FHA considers any residential properties that are between one to four residential units as residential properties. Home Buyers can purchase up to a four-unit multi-family property with an FHA loan with a 3.5% down payment.
Here are FHA 203k Rehab Loans in Chicago Illinois and its FHA Loan Limits in Chicago for one to four-unit properties:
- One Unit Properties $365,7000
- Two Unit Properties $468,150
- Three Unit Properties $565,900
- Four Unit Properties $703,250
203k Rehab Loans Experts
Recently I’ve watched the mortgage business become flooded with hundreds of newly minted FHA 203K Rehab Mortgage experts.
- They went to a four-hour seminar and now they’re fully certified experts
- They even have little diplomas to evidence their expert status
- Unfortunately, with this bunch, you’ll probably find Jimmy Hoffa before your FHA 203K Rehab Mortgage goes anywhere near a closing table
What Are FHA 203k Rehab Loans?
FHA 203k Rehab Mortgage is a complex financial instrument:
- There are many more moving parts than a standard red white and blue, bread and butter FHA insured mortgage home loan
- Letting a loan officer originate a 203k Rehab Mortgage Loans that don’t have full working knowledge of the mechanics of this loan product would be like having a five-year-old landing a Boeing 747 aircraft
Questions To Ask A FHA 203k Rehab Loans Mortgage Lender
When you are interviewing a prospective FHA 203k Rehab Mortgage Lender, ask the following questions:
- How many FHA 203k Rehab Mortgage Loans have they actually closed
- How many have the Mortgage Bank they work with actually closed FHA 203k Rehab Loans
- What’s the name of the consultant they are and/or will be using
- Ask them to explain the draw process of their FHA 203k Rehab Mortgage Process
- If whoever you ask these questions to can’t answer them without having to put you on hold, hang up immediately contact us at Gustan Cho Associates and read up on the inner-workings of FHA 203k Rehab Mortgage Loans
- Spending a little time now will save you a lot of time and headaches later
- We Are Specialists On FHA 203k Rehab Loans With No Lender Overlays
A large percentage of our FHA 203k Loans are borrowers who could not qualify at other Mortgage Companies due to their mortgage lender overlays .
Here is something to consider when choosing the right FHA mortgage lender:
- Many Lenders have higher mortgage lending guidelines than the minimum HUD guidelines due to the layers of risk with 203k Rehab Loans
- Many Lenders will not accept any mortgage loan borrowers without 640 credit scores
- We have done countless of FHA 203k Rehab Loans for borrowers with credit scores of under 640 FICO
If you are planning on purchasing a foreclosure or fixer upper and need a Lender With No Lender Overlays, contact Gustan Cho Associates at 262-716-8151 or email us at GCho@gustancho.com. We are available 7 days a week, evenings, weekends, and holidays. The mortgage company. Gustan Cho Associates at Loan Cabin Inc. is a national Fannie Mae, Freddie Mac, Ginnie Mac Direct Mortgage Lender