FHA 203k Rehab Loans in Chicago Illinois
This BLOG On FHA 203k Rehab Loans in Chicago Illinois Was Written By Gustan Cho
FHA 203k Rehab Loans in Chicago Illinois is one of the most popular mortgage loan programs with The Gustan Cho Team. FHA 203k Rehab Loans in Chicago Illinois are great mortgage loan product when used correctly for both home buyers buying a fixer upper or a homeowner needing rehab on their home and needing a 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 the FHA 203k Rehab Mortgage program.
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 with the type of work the homeowner can do. Here is the type of work you can do with a Streamlined FHA 203k Loan Program:
- Limitation up to $35,000 construction budget
- You cannot do any structural repairs such as room additions or combining two bedrooms into one
- Kitchens, bathrooms, HVAC repairs and replacement, new flooring, new appliances, new millwork, new windows, new roof, new gutters/sofits/fascia/downspouts, and electrical and plumbing updates/replacement/repairs can be covered.
With the Full/Standard FHA 203k Loan Program, there is no construction loan max 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 which 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 a FHA Loan with 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 with 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 doesn’t have a 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 has 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 The Gustan Cho Team 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 FHA 203k mortgage loan borrowers who could not qualify at other FHA 203k Mortgage Companies due to their mortgage lender overlays . Here is something to consider when choosing the right FHA mortgage lender:
- Many FHA 203k Rehab Mortgage Lenders have higher mortgage lending guidelines than the minimum FHA lending guidelines due to the layers of risk with 203k Rehab Loans
- Many FHA 203k Mortgage Lenders will not accept any mortgage loan borrowers without a 640 FICO credit scores
- We have done countless of FHA 203k Rehab Loans for mortgage loan borrowers with credit scores of under 640 FICO
If you are planning on purchasing a foreclosure or fixer upper and need a FHA 203k Rehab Mortgage 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 The Gustan Cho represents is a national Fannie Mae, Freddie Mac, Ginnie Mac Direct Mortgage Lender