Chicago area FHA

How to Find the Right Lender for a FHA 203k Renovation Loan

                  A renovation loan, or FHA 203k renovation loan, is a great tool for buying a home that needs some repairs or improvements to raise the value of the home. Renovation loans allow buyers to incorporate renovation costs into the mortgage in order to improve the home and raise its value immediately, rather than waiting to renovate years down the road. In addition, this can save money in comparison to a second mortgage or use credit cards to make improvements. When shopping for a lender, what questions do you need to ask when considering a renovation loan, or FHA 203k renovation loan? How Experienced Is the Lender? How many renovation loans has the lender done in the past? There are many moving parts to a renovation loan: you have to approve the situation, know the timing of everything, and know what is…

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Chicago Home Market- Strong and Getting Better

  The housing market in the Chicago area is comparatively strong, and gaining strength. That’s the news from the National Association of Realtors, which released a report on home sales last week. While national sales of previously occupied homes dropped slightly, the Chicago area found a significant increase in sales in May, compared to April. The price also edged up, though only negligibly, at .1 percent to $170,000. Some communities in the south Chicago suburbs saw even greater increases than average. Tinley Park saw sales of existing single family homes double in May, though the sale price was down, meaning that the newly bought homes were more affordable. Oak Lawn saw a 32% jump in sales with the price declining even further for homebuyers. Nationally, buyers have been increasing over the past year; sales have risen almost 10% from last year, showing that here is a slow, but steady, improvement…

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FHA Streamline Refinance – New Program Will Help Some Chicago Area Home Owners Save Money

Starting in June, FHA will begin a new program that will help some home owners with FHA mortgages save a lot of money, but many other wise qualified homeowners won’t be able to take advantage of this new program. The new FHA program will allow borrowers who currently have an FHA mortgage to refinance with today’s record low rates, and keep their mortgage insurance at the same rate they started with even though the FHA mortgage insurance premium now is much higher. The catch is, this program only applies to those borrowers who took on the mortgage (either from a purchase or a refinance) before June 1st 2009. This means that if you bought your home or refinanced with an FHA mortgage in the last 3 years, you are out of luck, at least for now. With the new FHA streamline refinance the Upfront mortgage insurance is reduced to .01%…

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Last Chance to Buy a Chicago Area Home with No Money Down – FHA Loans with Down Payment Assistance Are About to Disappear

One of the provisions of the recently signed Housing Bill, was the elimination of the Down Payment Assistance Programs (DPAs) like Ameridream and Chicago FHA loans | Mortgage Company | Mortgage Broker Nehemiah. These programs were a legal loop hole which allowed sellers, in a round about way, to fund the buyer’s down payment and allow them use an FHA loan to buy with no down payment from their own pockets. The DPAs have been a great deal for home buyers who didn’t have extra cash saved up for a down payment, and it’s been a great deal for home sellers because they brought in home buyers who otherwise wouldn’t have been able to buy a home. The down side has been that FHA has linked the DPAs to a higher default rate, and they’ve been trying to shut them down for years. Ameridream and Nehemiah contest the default figures,…

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