I recently bought a condo cash but it needs work. What would be the loan type in this situation?

Asked by o_profitt, Chicago, IL Sun Dec 2, 2012

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Maria Cipollone’s answer
Maria Cipoll…, Agent, Coral Springs, FL
Mon Dec 17, 2012
Predictions for 2013 include home prices continuing to increase as the real estate market stregthens. It will be a good idea to shop around for a mortgage broker that can assist you in this type of loan.

Best of Luck,

Maria Cipollone

Century 21 Tenace

2 votes
, ,
Mon Dec 3, 2012
Everyone below has fairly well covered it. If the property needs significant work and the condominium project is FHA approved, then your best bet is likely the FHA 203k Rehabilitation loan. Call me to discuss further. This is a loan program that our office has 20 years of experience in originating...and we actually like doing them.

Bradley Eggers
NMLS #: 222407
Senior Loan Originator
One Mortgage, Inc
119 E Palatine Rd #200
Palatine, IL 60067
1 vote
Manuel Brown, Agent, Chicago, IL
Mon Dec 3, 2012
Dear Condo Owner,

Definitely talk to a lender. Clients I have referred and I have been happy with guaranteed Rate.

Best of luck,

Manuel Brown
0 votes
, ,
Mon Dec 3, 2012
This will really depend on the condition of the property. If the property is currently not habitable or in disrepair then you are going to need to utilize a rehab loan - A home equity or even a first mortgage could be an option but the propertry has to be in fair shape for the apprisal.
If the property just needs minor repairs or updating a Home Equity is most likely your best bet.
Regardless you should consult a lender to discuss the specifics - Its free and the best way to make sure you are headed in the right direction.
Sam Sharp
Senior VP of Mortgage Lending
Guaranteed Rate
773 290 0455
0 votes
Philip Sencer, Agent, Chicago, IL
Mon Dec 3, 2012
Ask a lender or two. My web site has some references, but either an equity loan or a 1st mortgage.
0 votes
Alan Maynie, , Chicago, IL
Sun Dec 2, 2012
This would depend on the property. An accurate appraisal could be a problem if the property was purchased from one of the "special" programs.

I would contact a quality mortgage banker to discuss the options. If you need a referral pleas feel free to contact me.
0 votes
Alvin Dobbs, Agent, Waukegan, IL
Sun Dec 2, 2012
Contact your local bank for a Home Equity Line of Credit. See if you and the home qualify for the program.

Al Dobbs, Broker
Add Real Estate
0 votes
Joe Schiller, Agent, Chicago, IL
Sun Dec 2, 2012
you can always refi cash out for 50% LTV with credit and income
0 votes
Luke Wojcik, Agent, Chicago, IL
Sun Dec 2, 2012
Yes cash out refi is probably your best bet
0 votes
Matt Laricy, Agent, Chicago, IL
Sun Dec 2, 2012
I would speak to a lender. You should be able to pull equity out if you wanted to.
0 votes
Bill J Delig…, Agent, Naperville, IL
Sun Dec 2, 2012
Assuming that both you and the building qualify for the loan, this would be considered a Cash Out Refinance.
0 votes
Sohail Salah…, Agent, Chicago, IL
Sun Dec 2, 2012
Are you looking for a rehab loan? If so then this would depend how much equity you have in the property. The only way to accomplish your goal is to pull money out of the home to finish the work.

Sohail A. Salahuddin | Group Founder

Innovative Property Consultants Group | Sales and Leasing


Jameson Sotheby’s International Realty

425 W. North Ave. | Chicago, IL 60610 

O: 312.335.3230 | C: 312.437.7799 | F: 847.805.6030

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