Tuesday, May 12, 2015

Know your options with FHA, VA and conventional loans on "fixer-up" properties

I took this photo of a two-flat property in need of complete rehab in Albany Park. Whether a property needs cosmetic updates or a complete gut rehab will affect your financing options.  Our clients would most likely need an FHA 203(K) construction loan for a property in this condition.

We've been working with a lot of first time buyers looking for the best location they can get on a limited budget. The properties often need minor to major renovations work. We ask our clients to work with a great mortgage lender to understand their purchase options. Single family homes, multi-units and condos all have differing  factors that affect a loan. 

FHA and VA loans often face stricter appraisal scrutiny that requires defects in the property to be repaired before a loan is approved.  There are differing lending limits depending on the the number of units a property has and the loan product. Many of our first time buyers will receive a monetary gift for the down payment.  This needs to be accounted for way in advance of loan approval.

Contact Senior Mortgage Consultant Steve Dunnett for your mortgage option on rehab properties. There are many lender options but we've enjoyed working with Steve as a knowledgeable associate for many, many years. It pays to have a team in place that knows your situation when you are looking to quickly take advantage of refinancing or buying a property at any time.

Steve Dunnett
Senior Mortgage Consultant

312-725-2068 (DIRECT)
708-289-3408 (CELL)
312-379-8844 (E-FAX)

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