Financing in Chicago>Question Details

Diante Adams, Home Buyer in Chicago, IL

Can I use my Welcome Home Heroes grant, with a homepath renovation loan?

Asked by Diante Adams, Chicago, IL Fri Jul 26, 2013

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6
Good Morning-

I offer both the IHDA loan programs and the Homepath renovation loan. Unfortunately you cannot use the Welcome Home Heroes grant in conjunction with the homepath renovation loan as IHDA does not provide that product with their program. However you can purchase the homepath eligible property with as little as 3% down and add in the cost of the renovation work. The down payment is based on the acquisition cost plus the cost of the work. If you have any questions please feel free to contact me. Thank you.

Jim Pontious
Mortgage Banker
PHH Home Loans
NMLS 201084
773.704.7299
jim.pontious@phhonline.com
1 vote Thank Flag Link Sat Jul 27, 2013
Diante,

IHDA's programs can be used for FHA, Convention and VA loans. You should be able to, but the best person to ask is a lender who has experience with both programs.

If your lender believes this can be done, there are a couple things to keep your eye on once you execute a contract.

1. Whether it's Homes for Heroes, Building Blocks, Smart Move or and other downpayment assistance program (DPA) administered by IHDA, IHDA requires that the seller and purchaser sign their application and that a notarized original be delivered back to IHDA. This should be started as soon as you have an executed contract. Communication lines from Fannie Mae can be challenging, and getting them to understand why you need an original notarized document, as opposed to a fax or electronically signed copy, may take a few attempts. The can provide it, but with the workload FM asset mangers and attorneys have, bandwidth is limited, and they only do what's required to get the deal done. Getting financing extensions on transactions with Fannie Mae can be touch and go, and if this document is delayed, IHDA may not clear the DPA funds in time to meet your mortgage contingency deadline.

2. Homepath renovation has a lot of moving parts. Make sure that you are with an experienced lender, and that the lender clearly outlines what you need to provide to them to get your file through underwriting in a timely manner.

Hope this helps, and best of luck with your search.

Wayne Beals
312-772-3257
1 vote Thank Flag Link Sat Jul 27, 2013
Hello Diante,

First, welcome home and thank you for your service!

Contact Sam Sharp, he's very knowledgeable and a great guy!

Good luck!
0 votes Thank Flag Link Tue Jul 30, 2013
I am sorry Diante but you can't combine the programs. If you would like more information about either program please feel free to contact me directly.
Sam Sharp
Senior VP of Mortgage Lending
Guaranteed Rate
773 290-0455
0 votes Thank Flag Link Sat Jul 27, 2013
Welcome Home and Thanks for serving.
The best person to ask will be your loan officer who is doing the Homepath loan and who is giving you the preapproval. If he/she says no, I would ask someone else, just to doublecheck.

Thanks again.
0 votes Thank Flag Link Sat Jul 27, 2013
I would suggest talking directly with the Welcome Home Heroes program:

http://www.ihda.org/homeowner/gettingLoan.htm#WelcomeHomeHeroes
0 votes Thank Flag Link Fri Jul 26, 2013
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