ARTICLES

Chicago 5% Down Loans on 2 to 4-Unit Buildings

Chicago 5% down loans on 2 to 4-unit buildings are a reality again. On 11/18/2023 Fannie Mae has announced that it will start accepting again 95% LTV (loan-to-value) loans against 2 to 4-unit buildings. (It wanted 85% LTV's for 2-unit properties and 80% LTV's for 3 and 4-unit properties for several years now.) The change applies to owner-occupied properties only. Investors still need to have 25% equity / down payment. If you happen to own such a building and you live in it, you now have a lot more equity you can access. If you're looking to buy...

Self-Employed Mortgage Income Issues

I just closed a mortgage on a single-family house in Tinley Park, IL for a self-employed borrower. It was more stressful for the borrower than it needed to be. The reason? The way she got paid. Self-Employed Mortgage: Proving Income Lenders lend to people who prove that they can repay the loan. Pre-Covid, that meant borrowers had to show: two months of bank statements, tax returns for 1 or 2 years, profit and loss and, maybe, balance sheet. (The financial statements can be prepared by the borrower. If they are audited, lenders usually do not ask to see bank...

Asset Depletion Mortgages – Income Calculations

With asset depletion mortgages, lender take the totality of cash and easily-converted-into-cash assets a borrower has and convert them into income. (By the way, some people call asset depletion mortgages asset-based mortgages.) The best way to show you how it's calculated, is with examples. Call me at 847-840-8884 to figure if an asset depletion mortgage loan will work for you. Income Calculations for Asset Depletion Mortgages - Examples   The borrower has $1,800,000 cash sitting in a bank account. (We're using cash because it is the most straightforward way. There are no early withdrawal penalties to take into account, for instance.) The borrower is purchasing...

Chicago FHA Mortgages: Mixed-Use Property Loan Issues

Chicago FHA mortgages against mixed-use 2 to 4-unit properties are harder on borrowers than any other type of mortgage loans. Applying for an FHA Mixed-Use Loan Not all loan originators know how that it is possible to get an FHA loan against a mixed-use 2 to 4-unit property. In addition, some of those who do, do not fully understand the rules. But most of all, hungry for loans, take the application anyway. Some even try. Hard. And fail. That means long delays for the borrower. Which mean stress. If the application is for a purchase, the closing deadlines add to the stress. Getting an Appraisal...

DACA Mortgage Loans – Yes, You Can

The world of DACA mortgage loans has changed recently: the FHA is now insuring mortgage loans for DACA status recipients, as long as they have a valid Employment Authorization Document, a social security number and meet the other FHA requirements. So, if you've got DACA status and want a low-interest mortgage loan, start looking. Remember, FHA loans must be used to purchase / refinance a primary residence (1-4 unit properties; condos must be approved, interest rates are lower than on conventional loans, so are the down payment required but there's upfront mortgage insurance and, on 30-year loan monthly insurance that does not go away, no matter...

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Chicago Bank Statement Mortgages: Self-Employed Borrower Solutions

Qualifying for Chicago bank statement mortgages is an option available only to people whose income is not from wages and for investment properties. These mortgages are a good option when the income on business taxes is not always a good reflection of how well a business (freelancer, contractor) is doing....

Non-QM Loans in Chicago

Non-QM loans in Chicago are alive and doing well. Non-QM loans are those loans against 1-4 unit properties that do not abide by the rules set in place after the 2008 melt down, loans with risky features or loans that do not fully vet a borrower. Asset-based...

Chicago Fix and Flip Loans: Good Options for 1-4-Unit Properties

Chicago fix and flip loans for 1-4 unit properties are the answer for many investor. This article may help.

Chicago FHA Mortgages: Mixed-Use Property Loan Issues

Chicago FHA mortgages against mixed-use 2 to 4-unit properties are harder on borrowers than any other type of mortgage loans. Applying for an FHA Mixed-Use Loan Not all loan originators know how that it is possible to get an FHA loan against a mixed-use 2 to 4-unit property. In addition, some of...

Get Low Mortgage Rates for Chicago Area’s Self-Employed

You can get low mortgage rates in Chicago in July 2020. Interest rates in the Chicago area for a 30-year conventional mortgage are close to 3% . You should be thinking about refinancing. Even if you're self-employed and hear it is harder now, because of Covid19, to get approved. Because...

Chicago Mortgages: 9 FHA Facts That Will Make You Jump With Joy

Chicago mortgages include FHA loans, and many people think (erroneously) that they know all there's to know about them.  Here are some facts about them you probably did not know. Yet they might make you see FHA loans as the loans for you. 1. You don't need credit scores to...

Des Plaines Condo Loans: 7 Ways They’re Harder

Looking into Des Plaines condo loans? They're a bit harder to get than loans on a house. They are harder because they're riskier: lenders don't have to worry just about you and your unit but also about common areas, homeowners’ associationand other unit owners. So do you. Here's how things...

Asset Depletion Mortgages – Income Calculations

With asset depletion mortgages, lender take the totality of cash and easily-converted-into-cash assets a borrower has and convert them into income. (By the way, some people call asset depletion mortgages asset-based mortgages.) The best way to show you how it's calculated, is with examples. Call me at 847-840-8884 to figure if...

FHA 203k Loan in Chicago: Avoiding Pitfalls

Googling "203k loan Chicago" or some other such phrase, but not out of sheer curiosity? Then this article, written by a Chicago mortgage specialist, is for you: it points out common mistakes and tells you how to avoid them. FHA 203k Loan Explained First, let's review what the 203K loan program...

DACA Mortgage Loans – Yes, You Can

The world of DACA mortgage loans has changed recently: the FHA is now insuring mortgage loans for DACA status recipients, as long as they have a valid Employment Authorization Document, a social security number and meet the other FHA requirements. So, if you've got DACA status and want a low-interest...
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