Asked by Angie, Chicago, IL • Sun Oct 5, 2008
I was told last friday that the guideline to qualify for the FHA 203K Loan has changed drastically. I figured as much with the economy, nut not this much. I currently own a two flat with my Mom. Our mortgage is 1800. I want to purchase a distressed single family home and rent out my apartment. I was told by a Flagstar rep on Friday that with the new guidelines I would need to have 12 months of rental income in the bank for the entire mortgage amount, not what I would be renting my apartment for. In other words, before I could qualify I need to have 22,000 in the bank to secure a rehab loan. Is this true? If I had 22,000 in the bank, why would I need a rehab loan? The asking price of the distressed property is 99,000, you can't by a vacant lot in this area for less then 160,000 so I know it would be a great buy.
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