Home Buying in Chicago>Question Details

Ron Ermis, Renter in Chicago, IL

My wife and I will be first time Home buyers and need advice on what type of Loan programs exist.

Asked by Ron Ermis, Chicago, IL Mon Nov 12, 2012

My wife has excellent (720 ) credit and mine is good(650 ). This will be our first home but will not have 20% for a down payment. Most likely we will only have around 10% max. Can anyone recommend any programs that are available or any materials I can read? I have done google searches but all the info is scattered and hard to understand.

Thank you.

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Answers

24
James P. Michaels’ answer
Take the following steps

1. call

Wieslaw (Wesley) Jura Vice President. NMLS ID 225274. Direct: 773-304-3412. Fax: 773-283-2788. Cell: 312-405-2404. wjura@unitedequity.us

2. call or email

jmichaels@remax.net for a list of homes you desire
0 votes Thank Flag Link Wed Nov 14, 2012
Good Morning Ron,

Your best to meet with a experience loan officer who can give you a free preapproval based on your credit, income, current liabilities... As far as programs available, FHA is probably your best option. Minimum 3.50% downpayment and that can be a gift from a family member. Also look into a IHDA Smart Move. This program is a State of Illinois program thru Illinois Housing Development Authority. With this program you could qualify for up to $6,000.00 in down payment and/or closing cost assistance. Go to http://www.ihda.org for more information.

Should you have further questions, do not hesitate to contact me.

Good Luck,

Nick Nelson (NMLS#384413)
1st Step Mortgage Group
815-289-0880 - Phone
nickn@1stepmortgage.com - email
0 votes Thank Flag Link Wed Nov 14, 2012
Hi Ron,

You don't need 20% down payment. You can get an FHA loan with 3.5% down and your credit scores. I would work on getting your credit score above 700 to get better rates and more options.

Best of luck,

Ivan Sagel
312.515.7823
Ivan@atproperties.com
0 votes Thank Flag Link Tue Nov 13, 2012
IHDA IHDA IHDA

Illinois has a great program for first time homebuyers. They'll grant you some of the down payment money (3-5k) There are income requirements. But if you do qualify, you can use that 10% to do work to your house, or take a vacation to Peoria. Peoria, Italy.

I'm putting the link below. Not all lenders do this, and it's really perfect for those with limited funds. Makes you wonder how a broke state still has money in the program, but they do:

http://www.ihda.org/homeowner/granthomebuyer.htm
0 votes Thank Flag Link Mon Nov 12, 2012
You can do FHA to pay only 3.5% down and pay private mortgage insurance if this allows you to buy a home that you may need to update or spend some money on. This way you can save a few thousand on immediate improvements or new appliances. FHA loans dont penalize borrowers with lower credit scores and are the first time homebuyer's easiest solution. The process can take longer than a conventional loan though. If you are looking at a condo or town home, than the property must be FHA approved OR a single family if the home doesn't have any safety issues and is ready for occupancy.
Also some homes owned by banks offer HomePath financing incentives or HomeSteps incentives with their own programs to allow for "fixing up" the property by the new buyer. They require, in most cases, that this be a primary residence. A good buyer specialist can also check the property to see if it qualifies for buyer incentives- locally or nationally. Allow a Realtor buyer specialist to guide you through this process and simplify your search. I start by recommending buyers to lenders to prequalify them. You may check out 3 lenders to see what they can offer you and what fees they charge. Different lenders can offer you a variey of choices and interest rates. Be happy to assist you further. Email me if you're not working with an agent
0 votes Thank Flag Link Mon Nov 12, 2012
Hello Ron,

There are numerous programs available and each lender will have their own set of guidelines they follow. I would suggest you interview three lenders and see which one meets your needs. Try going with one major big block bank and two smaller community banks. Each one has its own niche market or loan program they prefer to use. I hope this helps and if you have any questions feel free to contact me at 773-627-7608. Good luck!
0 votes Thank Flag Link Mon Nov 12, 2012
call or email Wesley Jura for finance and Jim Michaels at JMICHAELS@REMAX.NET for some unbelievable deals I have been obtaining for my clients

Wieslaw (Wesley) Jura Vice President. NMLS ID 225274. Direct: 773-304-3412. Fax: 773-283-2788. Cell: 312-405-2404. wjura@unitedequity.us
0 votes Thank Flag Link Mon Nov 12, 2012
99% of sales are FHA on fix rates, there are buyers down payments assistance offered through
fast track programs. For further information contact Sandy Garcia @ 312-618-8417 with RE\MAX AllStars
0 votes Thank Flag Link Mon Nov 12, 2012
Your credit and amount of down payment appear adequate in order to obtain a loan.

3 important items considered when obtaining a a loan:

1) Income
2) Credit History
3) Amount of Down Payment

It's a great time to be borrowing money especially if you do not have a home to sell.

Feel free to contact me if you would like to be Pre Qualified.

Bill J Deligiannis
First Centennial Mortgage
B.Deligiannis@GoFCM.com
630-788-5288
0 votes Thank Flag Link Mon Nov 12, 2012
YOU HAVE LOTS OF OPTIONS..

10% down and a 90% loan with mortgage insurance
10% down and a 90% loan with lender paid mortgage insurance
10% down and a 80% loan with a10% second mortgage and no mortgage insurance.

Call me for more info..
708 652-8888
0 votes Thank Flag Link Mon Nov 12, 2012
all kinds.. you are wasting your time doing anything other tan coming into my office to talk with my professional team.. I will get you the best deal
0 votes Thank Flag Link Mon Nov 12, 2012
Hi Ron,

I went directly to a lender that I've used for years regarding your question and the following is his reply:

Hi Ed,

In response to the couples quandary as to which loan program use, I would suggest an FHA mortgage and support my answer with these reasons.

1) The borrower's credit of 720 is good, but optimal is 741. Conventional programs will allow for a 720 fico, but if both borrowers will be on the loan, and are utilized for the income.(Both on the mortgage), all credit is used. The lowest credit score will be the basis for the credit that is used. Looking at this scenario, the credit score utilized will be the 650. FHA will allow this credit score to be used without incurring a pricing penalty, that is not the case with conventional financing.

2) The borrowers have limited funds and not enough to put 20% down. This is a concern with conventional financing and with their lowest fico score of 650, will be hard pressed to obtain mortgage insurance, which is required for loans greater than 80.00% LTV. This is not the case with FHA, that once you qualified/approved, you are approved for both the Mortgage and Mortgage Insurance(MIP/PMI/MI).

3) If you are looking at a 30 year fixed, rates and costs are very similar. There are some differences, but at 90% LTV or less, they are minor.

Sincerely,

Lance

Hope this helped. If you're not working with another Realtor, and if you have the time, please take a look let me know if I can assist in your search.

My best,

Ed

--
Edward Grabarek
Broker/Realtor
Real People Realty
Cell: 312.339.9468
Fax: 312.377.1962
EdGrabarek@gmail.com
http://www.MyNewInvestment.com
0 votes Thank Flag Link Mon Nov 12, 2012
Hi Ron,

I really like Mary Kay Laurent from Guaranteed Rate. Mary is very enthusiastic and takes the time to explain to clients what programs are available as well as a clear explanation to the buyer about the programs and will take you through the process step by step.

Mary Kay Laurent
Associate VP of Mortgage Lending
Guaranteed Rate
773-516-6859

Best of luck,

Manuel Brown
iMove Chicago, Broker
0 votes Thank Flag Link Mon Nov 12, 2012
I would contact a good lender. Try Tony Lupescu 708-351-6416 he is the best.

Also, get a good realtor. This way you have someone to walk you through the process, at no cost to you. Interview two or three agents and go with the one you mesh best with.
Web Reference: http://AmericorpRe.com
0 votes Thank Flag Link Mon Nov 12, 2012
There are many different options and you do not have to put 20% down. I would recommend calling a good lender or mortgage broker to discuss your situation. If you would like the name of a very good mortgage broker who I really trust, please email me.

Thank you!

Josh
Weinberg Choi Realty
josh@weinbergchoirealty.com
0 votes Thank Flag Link Mon Nov 12, 2012
Ron,

If you'd like to give me a call, there are a few different programs that you and your wife may qualify for. There are also some down payment assistance programs you might want to take advantage of.

The important thing is to structure the loan in a way that makes sense for you and your family.

Until we can actually have a conversation, it'd be difficult to determine what would work best for you, so when you get a chance, please give me a call on my cell phone.

Thanks,

Matt Bukovy
Senior Mortgage Consultant
773-416-7107 - cell
Wintrust Mortgage
Web Reference: http://www.mattbukovy.com
0 votes Thank Flag Link Mon Nov 12, 2012
Hello Ron
There are a variety of programs ranging from 3% down or more - this includes both conventional as well as FHA - there are even options with no PMI

I would recommend speaking with a recommended loan aooficer in order to find out which program best suits your personal needs. I would be hapy to help and there isno obligation

Sam Sharp
Senior VP of Mortgage Lending
Guaranteed Rate
773-290-0455
0 votes Thank Flag Link Mon Nov 12, 2012
Ron

There are many different programs available to help people like yourself start the journey of becoming a homeowner. I would be more than happy to assist you (773)710-6016 Markdewberry1@gmail.com.
0 votes Thank Flag Link Mon Nov 12, 2012
Hi Ron,

There are various programs available that do not require 20% down. To sum it all up, generally, borrowers fall into 2 catagories:

1. Conventional - 20% or more down, monthly payment of principal + interest

2. FHA - less than 20% down - monthly payment of principal, interest + mortgage insurance

There are, however, a variety of other loan products out there depending on which property you end up buying, and what the specifics of your individual situation are. Please feel free to contact me directly, and I'd be happy to give you some direction & help you find a great property!

Thanks,
Terry Farnsworth
Licensed Broker
Prospect Equities Premier
http://www.SelectiveBuyer.com
terryfarnsworth@prospectequities.com
(630)-747-3426
0 votes Thank Flag Link Mon Nov 12, 2012
Find a good realtor who can point you in the right direction. Currently, there are programs with the State of Illinois that will give you $5000-$15000 to help you buy a home. You may be eligible for home buying assistance through your employer. Some cities may even have programs specifically for folks like you. Long story short- get aligned with a knowledgeable realtor to help you out.
0 votes Thank Flag Link Mon Nov 12, 2012
Ron,

I would recommend speaking with a mortgage professional.





Sohail A. Salahuddin | Group Founder

Innovative Property Consultants Group | Sales and Leasing

http://www.innovativepropertyconsultants.com



Jameson Sotheby’s International Realty

425 W. North Ave. | Chicago, IL 60610 


O: 312.335.3230 | C: 312.437.7799 | F: 847.805.6030

"Locally Known, Globally Recognized"
0 votes Thank Flag Link Mon Nov 12, 2012
There are a number of options. My web site has some lender references. Give them a cal and chat about it. There is no cost.
0 votes Thank Flag Link Mon Nov 12, 2012
Hi Ron, you should meet with a loan officer. Try contacting the bank you are using right now and talk to one of their mortgage brokers. He/She should be able to give you the programs you will be qualified for. Feel free to contact me when you are ready to buy and know how much you are qualified for.
0 votes Thank Flag Link Mon Nov 12, 2012
Good morning Ron Ermis,

Here's my advice based on my 23 years experience as a Mortgage Banker here in New York:


First steps:
1. Meet with a Local Mortgage Banker to get prequalified for mortgage financing. The Mortgage Banker will review all facets of your loan request to answer your questions with regards to the types of loans and maximum loan amounts you could qualify for.


2. Get a referral to a good, local, real estate attorney. Call the attorney, retain the attorney so you have her information handy when you make an offer. Having that information at time of offer helps you demonstrate to the Seller how serious you are, and they will consider your offer with more interest.

3. Line up a Home Inspector. A good home inspector will scare the heck out of you: that's what you pay him for! But you'll concentrate on the fundamentals of the property: roof free of leaks, plumbing, heating and electrical up to code and in good working order. Again, when you make an offer and you have your Home Inspector ready to go, your offer will be considered with much more interest by a Seller because you truly have your "ducks in a row" and your preparation demonstrates your serious attitude about conducting the purchase transaction in a timely manner.

4. Find an experienced Local Realtor who works in your desired shopping area. A serious pro Realtor will refuse to show you homes until you are Prequalified for mortgage financing. Don't take offense! That Realtor doesn't want you to be disappointed and wants you to have a smooth experience as you shop for your new home.

Put together your Team of real estate professionals and shop 'til you drop!

Good luck!
Trevor Curran
NMLS #40140
0 votes Thank Flag Link Mon Nov 12, 2012
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