Financing in Chicago>Question Details

Jj, Home Buyer in Bucktown, Chicago, IL

Are there any banks doing non-FHA rehab loans with about 5% down?

Asked by Jj, Bucktown, Chicago, IL Sat May 16, 2009

The rehab that needs done is just cosmetic, mainly just to update appliances, bath, etc. I figured the rehab amount would be less about $10K, which is less than 5% of the loan total.

Help the community by answering this question:


Your only option is going to be a conventional renovation loan. We have a version like a 203K at Wells that we sell to Fannie Mae. It requires that you put down 10% and the project is still subject to condo project approval as with any other condo development.

As for FHA, with seven units on a standard 203(b) (not a renovation loan), you could close in here as long as the project was spot approvable and no units were currently FHA fianced currently.

Best of luck with your search!
Web Reference:
1 vote Thank Flag Link Mon Jun 1, 2009
It sounds like you're going to need commerial loan?

Will Addo is a Renovation Specialist with Wells Fargo Home Mortgage. We finance 1 in every 4 home in your Market. While having no Best Sellers to his name, he's really a decent chap for all intensive purposes. By email, Will can be reached at By phone, he can be reached directly at 770-497-6006
1 vote Thank Flag Link Sun May 24, 2009
Hi, Jj. If the home is a Fannie Mae you can do a Homepath loan. No appraisal. No PMI. Only 3% dp required. Min credit score is 640. But of course at 640 you'll need to put probably 20% down.
0 votes Thank Flag Link Fri Apr 15, 2011
This is the trouble with the RE market and the lending institutions. These Brokers and lenders can only think in the old way of doing things. They have know idea of the new programs out there.

I am Chris Bauer the Broker?owner of Quality Funding Inc. here in Chicago, IL I have 3 solid lenders that do 100% Investor rehab funding. They close loans in 2 weeks usually. Not the typical 90 days to get a FHA 203K loan closed.

If you want details visit my site at We have proof we close loans and by the way its less expensive than you might think. NO UP FRONT FEES!
0 votes Thank Flag Link Wed Feb 2, 2011
Yes Quality Funding in Chicago IL does 100% Investor Rehab Loans. Much easier to qualify and they have proof that they close loans. This is your best bet and they offer loans in about 20 states. They website is
0 votes Thank Flag Link Mon Jan 10, 2011
What do you mean too many for FHA? Are you trying to rehab the whole building? Is there an association controlled by the homeowners? There are many reasons why a condo unit would or would not be approved by FHA. Please expand on your answer.
0 votes Thank Flag Link Tue May 19, 2009
Reason for the non-FHA loan is there are 7 condos in the building, too many for the FHA guidelines. Does the regular FHA loan have the same guidelines on the number of units in a building?
0 votes Thank Flag Link Tue May 19, 2009

I think your only option right now is the 203k with FHA. Any reason why you are looking for a non-FHA loan? Let me know, as our most popular loan right now is the 203k with FHA. It's a great program!

Kurt Clements
GSF Mortgage
3933 75th Street
Aurora, IL 60504

Office: 630.806.7016
Cell: 630.430.1091
0 votes Thank Flag Link Mon May 18, 2009
You can do an FHA streamline loan. Our main specialty is the 203K loan. Please read my blog linked to below for additional information.

David Cruickshank
Ardain Mortgage Corp
0 votes Thank Flag Link Mon May 18, 2009
You only option 5% or less down is the FHA 203k. Any reason why you wouldn't want to use this loan?
0 votes Thank Flag Link Sat May 16, 2009
none that I know of, good luck!
Web Reference:
0 votes Thank Flag Link Sat May 16, 2009
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