what are my financing options for an old home in chicago? owned for about 5 years now. needs updates and square footage

Asked by Cameron Goth, Chicago, IL Mon Mar 21, 2011

Help the community by answering this question:

+ web reference
Web reference:


John Walin, Agent, Libertyville, IL
Tue Mar 22, 2011
Matt's early answer is right on. When you bought five years ago, how much down did you put on the house and without improvements is the house worth what you owe? A current fee for service appraisal for $350/400 would go a long way toward defining your options. Pay for an appraisal and from there you can approach the bank with an accurate equity position
1 vote
Matt Bukovy, Mortgage Broker Or Lender, Chicago, IL
Mon Mar 21, 2011
Well that depends, Cameron.

If you purchased this home with little or no money down (which was possible 5 years ago) and the value isn't what it used to be (as is the case with much of America right now) your options may be limited to non-existent.

If, however, you have good credit, income and plenty of equity in the home, your options are wide open:
HELOCS still exist and can be used for renovation purposes.
FHA 203k's let you borrow more than the home is currently worth (if the upgrades brign it into line with current sales in the area - which is a might big "if")
And if you do have plenty of equity, you can always go the Cash-Out Refi route.

Basically, I'd need to know a lot more about you, your home, and your current financial situation before I could give you any meaningful advice.

Call me,

Matt Bukovy
Wintrust Mortgage
Web Reference:  http://www.mattbukovy.com
1 vote
Joe Schiller, Agent, Chicago, IL
Fri Apr 15, 2011
be careful about putting money in your home.. its depreciating and the time value of money says you purchased at the high point when money was easy to get and now you want to invest when money is still cheap but the market is saturated.. the dollars are worth less. if you do the work yourself i am going to want to see permits for my buyer so be careful. if your a pro..go for it with the below mentioned paths.. FHA is such an amazing value right now- contact me for further thoughts and direction
Web Reference:  http://joeschiller.net
0 votes
John Sommese, Agent, Orland Park, IL
Thu Mar 24, 2011
The only problem with the FHA203k is that it could take up to 60+ days to complete. From my experience this loan requires you to jump through alot of hoops. I have successfully worked with a local bank that offers a CONVENTIONAL REHAB LOAN that would allow you to refinance and pull money out to complete the rehab. In some case you can pull up to $90,000 on the rehab and best of all its done in 30 days. Call me if you would like more details
0 votes
Chris Depaepe, , Chicago, IL
Mon Mar 21, 2011
Hi Cameron

I am a 203k Loan Specialist at Wintrust Mortgage. This program would allow you to update your home and also do an addition. There are guidelines we would have to follow so a discussion would be the best thing at the moment for you to have. For a Single Family Home the loan limit with rehabilitation is $410,000 so if you already owe $410,000 for example this will not work for you. However if you owe $200,000 and have an small equity position at the moment than an addition and rehab work could be done up to $410,000 and or up to your income qualification. Please checkout my website http://www.chrisdepaepe.com. I do about 10 of these loans per month and it is critical you deal with someone who actually closes this type of transaction and specializes in this product. Please feel free to give me a call as well if you need more info, the website will have some general information for you to read over.

Christine DePaepe
Senior Mortgage Consultant
Wintrust Mortgage
1333 N. Kingsbury, Ste, 201, Chicago, IL 60642

Office: 312-462-7715 | Cell: 773-848-4144 | eFax: 312-873-3818
0 votes
Evelyn S. Fr…, Agent, Chicago, IL
Mon Mar 21, 2011
Hi Cameron,

Good advise here. I'm surprised no one has asked you if you want to stay in your home. Do you want to stay in your home?

If you're considering selling you may need to short sale the property based on other factors, i.e. what is the fair market value of your home vs balance due, is there a financial distress, etc...

Have you tried a loan modification? If not, why not start there? Talk to your lender, see where that gets you. As Matt Bukovy pointed out there may not be too many options for you based on your financial scenario. Talk to him & let him guide you, he seems to have the proper perspective.

Good luck! If you need a free market analysis, I'm here to help.
0 votes
Bradley Egge…, Mortgage Broker Or Lender, Oakbrook Terrace, IL
Mon Mar 21, 2011

The FHA 203k is a great option. Check out my website got great information and tools.
0 votes
Deborah Smith, Agent, Oak Forest, IL
Mon Mar 21, 2011
Start with a market analysis and talk to your bank lender to make a qualifying decision.
Deborah Bergthold-Smith Classic Real Estate 708-267-5552 debbiebergthold@sbcglobal.net
0 votes
Robin McGinn, Agent, Lockport, IL
Mon Mar 21, 2011
Is this your home, or a home you wish to purchase? There are a lot of factors, such as what type of updates, what you qualify for. Best to talk with a lender - I have terrific referrals if you would like more information, contact me.
0 votes
Philip Sencer, Agent, Chicago, IL
Mon Mar 21, 2011
You might have a problem as 5 years ago was the peak of the R E 'bubble' and the price you paid probably is not very close to the reality of the market today. You should speak with a couple of agents and get a market analysis for the property.
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more