Jumbo loan ($600k) with 5% down in Chicago North-Center foreclosed property?

Asked by DFiz1, 60614 Wed Jan 9, 2013

We are looking to purchase a foreclosed multi-unit (2 flat) in an excellent neighborhood (great school district). The neighborhood has been mostly shielded from the housing crash - next door homes are $750k - $850k and have sold the same-day as listing. This particular property has a new home being built next door appraised at $1.4MM. The property is in good condition, and is in move-in ready condition. We plan to live in the first floor unit initially, then convert the home to a single-family. This will be our primary residence. We are not first-time buyers (just sold our condo). We have good credit (median for wife & myself around 720), few debts (1 credit card , 1 car loan, 1 student loan - all in good standing), and a combined income of $200k annually. We are having a really hard time finding a lender for a $600k loan with 5% down. Any advice on lenders to talk to or options would be much appreciated! Thanks in advance.

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Five Stars, Other Pro, Jacksonville, FL
Wed Apr 13, 2016
Yes, we currently offer 95% Jumbo financing up to 1mil in Chicago. Fixed interest rate or ARM.. both with no PMI. Credit must be over 700 and able to document income.

Five Stars Mortgage
National Jumbo Loan Resource
7 days week - 9am-8pm
Ph: 800-871-2636
0 votes
lendersnetwo…, Agent, Plano, TX
Wed Jul 3, 2013
The 2013 conforming mortgage loan limit, as established by Fannie Mae and Freddie Mac, does come with exceptions. Specifically, for areas designated as "high-cost".

A high-cost area is exactly what it sounds like -- a city, town or county in which homes are more "expensive" as compared to national and regional averages.

For example, Loudoun County, Virginia along with the rest of Washington, D.C. Metro area (e.g.; Potomac, MD; Bethesda, MD; Alexandria, VA) are considered high-cost, as is nearly all of California, and areas including Eagle County, Colorado in which conforming loan limits extend to $625,500.

Not all high-cost areas allow up to $625,500, though so I would need to check on the county your in.
0 votes
Joanna Weiss, , Chicago, IL
Thu Jan 31, 2013
I could work with a 10% down payment. I dont believe that there is a secondary market product for what you are proposing. Let me know if I might be of help. 773-327-3580
0 votes
Seth Captain, Agent, Chicago, IL
Wed Jan 30, 2013
I do a lot of work with multi-units in Chicago, especially in the Bell and Coonley School Districts, and if some body has a 5% conventional loan, I can get you buyers, all of them stuck with either an FHA loan with murderous mortgage insurance or a whopping 20% down. There is occasionally a lender with a 10% program but they seem to come and go with their own set of very tight restrictions.

You may want to consider keeping the rental and duplexing down to your basement so you can pay for financing your rehab with the additional money from the rental.

Alternatively, you may want to give some of the other nearby schools with misleading test scores a chance. Both your kids and your budget might thank you later.
0 votes
Chicago Mort…, , Chicago, IL
Mon Jan 28, 2013
I am able to do something with 10% down. Unfortunately I don't know of any lender who'll do 5%, Especially on a 2-unit property. If you'd like to discuss further, please call or send an email. I'd
be happy to talk more about this scenario.

Thanks for your time...


JP Marzano
Senior Loan Officer - NMLS # 574681
Chicago Financial Services
312-204-6556 - direct
312-608-1555 - mobile
0 votes
JIM Michaels, Agent, Chicago, IL
Sun Jan 13, 2013
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
DFiz1, Home Buyer, 60614
Thu Jan 10, 2013
Thank you everyone for your replies and very useful information.
0 votes
Tammy K. Haj…, , Chicago, IL
Wed Jan 9, 2013
Again, feel free to call or write me directly if you'd like to review a couple of creative solutions that may be possible. However, If I don't get a chance to speak with you in greater detail, best of luck to you and Mrs. on the home search and here's to making 2013 your BEST YEAR yet: Have Fun, Make Money and Make a Difference!
Tammy K. Hajjar, Senior Mortgage Consultant, NMLS # 981615
Wintrust Mortgage
40 W. Hubbard St., 2nd Flr., Chicago, IL 60654
P: 773-609-4374 | F: 855-686-5377 | thajjar@wintrustmortgage.com | http://www.tammyhajjar.com
0 votes
, ,
Wed Jan 9, 2013
I am sorry to say but you will not be able to find financing at these terms. (unless you are a physician - in which case there are specific loans available for Dr's that will allow for this type of financing) The major sticking point is not just that this is a Jumbo with 5% down , but that this is also a 2 unit. The maximum conforming limit for a 2 unit in Chicago is $533,850 - so if you can ge the loan down to this amount you will have better options ( or at least some)
You could also look at FHA financing but the loan limits for a 2 unit with FHA are $524,850
I would be happy to talk through your options with you and answer any questions that you may have.
Sam Sharp
Senior VP of Mortgage Lending
Guaranteed Rate
0 votes
Tammy K. Haj…, , Chicago, IL
Wed Jan 9, 2013
Have a couple of creative solutions if you'd like to chat in greater detail. Call or write at your convenience:
Tammy K. Hajjar, Senior Mortgage Consultant, NMLS # 981615
Wintrust Mortgage
40 W. Hubbard St., 2nd Flr., Chicago, IL 60654
P: 773-609-4374 | F: 855-686-5377 | thajjar@wintrustmortgage.com | http://www.tammyhajjar.com
0 votes
Matt Laricy, Agent, Chicago, IL
Wed Jan 9, 2013
I would try calling Tony Lupescu with Fifth Third. His number is 708-351-6416.
0 votes
Luke Wojcik, Agent, Chicago, IL
Wed Jan 9, 2013
One more contact for you. Konrad Kosciuk kkociuk@englending.com 312.662.3720. Will help and let you know right away.
0 votes
Mark Malave, Agent, Chicago, IL
Wed Jan 9, 2013
Well, the 2 flat market is quite different than the SFH market. The comps may support it but lenders are a little tighter on 2-4 units than SFHs. You should contact Ryan Mecum at Wintrust Mortgage rmecum@wintrustmortgage.com. He will shoot you straight and let you know what can be done. Also, if this doesn't work out contact me and I can help you find a great property that you can fix up with less than 5% down.
Web Reference:  http://Www.markmalave.com
0 votes
Ivan Sagel, Agent, Chicago, IL
Wed Jan 9, 2013
Contact Sam Sharp with Guaranteed Rate. If it can be done, he can do it.

All the best,

Ivan Sagel
0 votes
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