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)
SDUNNETT@BLUELEAFLENDING.COM

NMLS#755940

First time buyer: Meeting HUD consultant for FHA 203k loans

Our clients are interested in purchasing a house that needs renovations.  They'd like to use an FHA 203k renovation loan and sought the services of a 203k consultant.

Sorry, this has got to go!

 Last week we met at the prospective house with Dominic Valenti an FHA HUD Consultant & 203k certified contractor.  The consultant felt the scope of the renovation needed and the construction budget the buyers could borrow using the FHA 203k loan were compatible. He helps the client manage the process of working with a certified contractor and the FHA lender (preparing the required documentation to each party and process involved).

 My role was to basically gauge what renovations would make sense for this particular market considering their budget.  The first time home buyers have a very realistic view of what would be in store should they move ahead with a purchasing the home using a 203k renovation loan.