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Financing in Chicago : Real Estate Advice

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Activity 515
Rob Weber, Real Estate Pro in Plainfield, IL
Thu Feb 19, 2015
Rob Weber answered:
You'll get two different answers asking a Realtor and a loan officer. Obviously you've seen the one side, now consider the other...

If you're planning on living in the house, we have to consider the state's high cost lending law that basically says if the fees on your loan exceed 5% (applicable to owner-occupied REFI's but not purchases), you've just issued a high cost loan. Lenders+title companies+appraisers would have to cut their fees to be able to originate a sufficiently small loan and at a certain point, the fees can't be cut anymore and you have a situation where it's nearly impossible to close on a financed transaction. You'll run into one of two things, lenders who have a minimum loan amount (this is generally the deal killer) and then others who don't but then have the issue with the high cost rule.

It'd behoove you to carefully weigh the pros and cons before making a decision. There are many homeowners out there that own homes they can't rehab because they went the purchase-and-worry-about-it-later route.

A rehab loan (203k/HomeStyle/HomePath renovation) is a great option if you can get the seller to agree to a 45-day close. I've done them in less than 30 days but the stars need to align for this to happen usually (borrowers and contractors usually can't get their docs together in two business days) so I always recommend 45-day closes. If your option is to buy+roll your rehab into one loan up front or potentially lose the deal, you may want to consider potentially losing it if you're not in a financially strong position to rehab it with your own funds post close or not willing to use hard money. Speaking of hard money, there's always this route but not every homebuyer is comfortable with this though it's not hard to find a referral to a reputable hard money source if you want one.

If you're buying an investment property with cash and want to do a financed rehab post-close, make sure you you get pre-approved for the rehab loan ahead of time or you may find yourself in a predicament. Also consider that post-close, you'll have seasoning to contend with so you can't use the new appraised value in most cases until one year has passed so don't plan on pulling all your cash back out immediately after close.

That's a summary from my last presentation, there's more to it (there always is) but that should give you a good base from the lending side of things to help you make a sound decision.

Best of luck!
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Diane Christ…, Real Estate Pro in Sarasota, FL
Sun Feb 15, 2015
Diane Christner answered:
FHA rules do not vary state by state. For information on circumstances where it may be possible to have 2 FHA loans at the same time, go to the link: ... more
0 votes 2 answers Share Flag
Matt Laricy, Real Estate Pro in Chicago, IL
Mon Feb 9, 2015
Matt Laricy answered:
You can change a lender anytime within the attorney review. Heck, people change even after.

I would get one locked up right away though. If you need a good referral, let me know.
0 votes 5 answers Share Flag
Matt Laricy, Real Estate Pro in Chicago, IL
Thu Jan 15, 2015
Matt Laricy answered:
Danielle Hud…, Home Buyer in New York, NY
Sun Jan 4, 2015
Danielle Hudson answered:
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Matt Laricy, Real Estate Pro in Chicago, IL
Mon Dec 8, 2014
Matt Laricy answered:
Mike Opyd, Real Estate Pro in Chicago, IL
Fri Nov 21, 2014
Mike Opyd answered:
I think I know which development your talking about. I know a few lenders who will do a conventional loan in there. Let me know if you would like a few names.
0 votes 3 answers Share Flag
Juliette Dav…, Real Estate Pro in Chicago, IL
Thu Nov 13, 2014
Juliette Davis asked:
I understand all reverse mortgages require the HOA to be FHA Approved. I live in a condo whose FHA Certification expired in 2012 and cannot be recertified because of lease restrictions…
0 votes 0 Answers Share Flag
Michael Decm…, Real Estate Pro in Bolingbrook, IL
Thu Nov 13, 2014
Michael Decman answered:
After chapter 7 bankruptcy you will need to wait at least 2 years from the time of the bankruptcy discharge before applying for an FHA mortgage, and 4 years for a conventional loan. This can be reduced to one year for extenuating circumstances with an FHA loan. With a chapter 13 bankruptcy, the waiting period is one year after discharge for FHA, or 24 months after discharge (or 48 months after dismissal) for conventional loans. After the applicable waiting period is over, you should be able to get financing easily as long as your credit has been clean since the discharge.
If this sounds at all confusing; feel free to contact me.

Mike Decman
Cherry Creek Mortgage Company
6440 Main Street, Suite 320
Woodridge, IL 60517
Loan Officer NMLS # 847074
Office 630-427-4668
Cell 239-633-6323
e-Fax 800-863-5473
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Matt Laricy, Real Estate Pro in Chicago, IL
Wed Oct 29, 2014
Matt Laricy answered:
0 votes 4 answers Share Flag
Howie Andron, Real Estate Pro in Chicago, IL
Thu Oct 16, 2014
Howie Andron answered:
This probably is not the right forum to seek business investors
0 votes 2 answers Share Flag
Scott Newman, Real Estate Pro in Chicago, IL
Mon Sep 29, 2014
Scott Newman answered:
Reach out to a reputable lender to help walk you through different options
0 votes 3 answers Share Flag
Larry Bernst…, Other/Just Looking in Chicago, IL
Sun Sep 14, 2014
Larry Bernstein answered:
Depending on the risk factors, it may be possible to put 15% down. Plus, depending equity and risk factors, refinancing your existing properties may make sense, not only for investing reasons but tax purposes as well. I am available to help if you would like to talk. Thank you.

Larry Bernstein. P: (847) 815-8229. NMLS# 280597
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Matt Laricy, Real Estate Pro in Chicago, IL
Mon Sep 8, 2014
Matt Laricy answered:
I have a few I can recommend. Its tough to get one if you have no ties here, but I have one or two.
0 votes 3 answers Share Flag
Chris Diamond, Real Estate Pro in Gurnee, IL
Fri Sep 5, 2014
Chris Diamond answered:
we have a few non-warrantable condo options for primary, secondary, and investment in the chicagoland area.

If more detail is desired feel free to contact me.

Chris Diamond NMLS 771882
Diamond Residential Mortgage Corporation
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Larry Bernst…, Other/Just Looking in Chicago, IL
Wed Aug 27, 2014
Larry Bernstein answered:
I would exhaust your options to purchase first. Most lenders have minimum credit scores that inhibit those looking to purchase from financing. However, my company offers loan programs down to 560 credit score. 560 - 580 credit scores require 10% down or 0% for veterans, 580+ require 3.5% down or 0% for veterans. 640+ may qualify for down payment assistance. I would be happy to help. contact me at (847) 815 - 8229, Thank you. Larry Bernstein. ... more
0 votes 9 answers Share Flag
Patty Harris…, Real Estate Pro in Naperville, IL
Tue Aug 12, 2014
Patty Harrison answered:
We may be able to help, but would need more information. Please email me or call.

I look forward to hearing from you,

0 votes 3 answers Share Flag
Matt Laricy, Real Estate Pro in Chicago, IL
Tue Aug 12, 2014
Matt Laricy answered:
I have a few lenders I would be happy to recommend.
0 votes 2 answers Share Flag
credithome, Home Buyer in Farmington, AR
Wed Jul 30, 2014
credithome answered:
Apply for a quick and convenient loan to pay off bills and to start a new financing your projects at a cheapest interest rate of 2%. Do contact us today via: CREDITHOME@BLUMAIL.ORG with loan amount needed as our minimum loan offer is 1,000.00 to any choice of loan amount.I am certified ,registered and legit lender.You can contact me today if you are interested in getting this loan, contact me for more information about the loan process, process like the loan terms and conditions and how the loan will be transferred to you. I need your urgent response if you are interested. ... more
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Matt Laricy, Real Estate Pro in Chicago, IL
Wed Jul 23, 2014
Matt Laricy answered:
There is a lot of lenders out there. I would be happy to provide some referrals.
0 votes 1 answer Share Flag
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