Wednesday, April 27, 2011

Introducing FHA 203 Construction Loan: Seminar this May 12th, 2011

Guest blogger Steve Dunnett, Senior Mortgage Consultant introduces FHA 203(k) construction loans.

How many times have you considered the perfect house in your ideal neighborhood but the kitchen or bathrooms needed to be updated? Maybe you found a foreclosed property but were intimidated by the repairs needed. If you are like most buyers you would pass on these houses because you either don’t have the money for construction after your down payment or you do not have experience with renovations.

There are many properties like this in this market, however investors are the ones buying them, doing the work, and putting them right back on the market for a much higher price. These renovated properties are selling quickly because now they are great houses in great locations. However, they would have made a great primary home for you with just a little work and money.

FHA has a construction loan that makes it easy for you to purchase and fix up your new home. There are two versions of the FHA 203(k) loan: a streamline and full. A streamlined 203k is limited to $35,000. A full is only limited by the FHA maximum loan limit, which changes depending on where you live. In the Chicagoland area that limit ranges from $410,000 for one unit up to $788,450 for a 4 unit.

The process of getting a 203k loan is very similar to getting other mortgage products. You will work with an FHA consultant who will help you with the construction portion of the loan. There are a few key things to know about the loan and we offer monthly seminars where you can speak directly with an FHA consultant.

*Our next seminar is this Thursday May 12th, 2011 from 11:00AM - 12:30PM at Marcello's 645 W North Ave Chicago. Please contact me, Steve Dunnett, Senior Mortgage Consultant at 1-708-289-3408 so we can reserve a spot for you.

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