Chicago mortgage loans come in many forms. Here’s a short description of the ones Dusan Varga can help you obtain:
Conventional Mortgages
Conventional Conforming
These are what most people consider conventional loans and are, by far, the most common residential mortgage loans in the Chicago area.
You qualify for one based on your current income, as long as you’ve been employed for at least 2 years. (Or have a good reason why not, such as, you were a student).
Conventional Non-Conforming
These are all loans where a government entity is not insuring the loan and the loan does not fit under the conforming rules. For jumbo loans, borrowers can qualify based on wages or, if self-employed, tax returns. For the rest, there are many ways to qualify for one, as long as the income used to qualify does not come from wages.
DSCR Chicago Mortgage Loans
DSCR stands for debt service cover ratio. Which means, borrowers qualify based on the total rents they receive for the property used as collateral.
Bank Statement Mortgage Loans
Just like it sounds, borrowers qualify based on bank statements (personal or business).
Profit and Loss Mortgage Loans
Borrowers present a profit and loss statement (and a balance sheet) to qualify for these loans, which are prepared by their CPA or tax preparer.
1099 Mortgage Loans
The income shown on a borrower’s 1099’s is used to qualify. Any type of 1099 form is acceptable.
Asset Depletion Mortgage Loans
For this type of loan, borrowers qualify based on the value of assets they own. Lenders use 100% of the value of cash assets, 80% of the value of stocks, 60% of the value of the current value of your future pension. Some lenders divide the assets amount by 60 months to come up with a borrower’s income, some by 72 months, some by 120 months. As you can imagine, you qualify for a lot more going to lenders who use 60 months than the other lenders.
CPA Letter Mortgage Loans
These are loans where borrowers qualify based on a letter from their CPA that states how much they (or their company) earned in the previous two years.
Jumbo Mortgage Loans
Government-Backed Mortgage Loans
Any and all mortgages where a Government entity insures part of or all the loan amount are covered here.The ones that can be used on Chicago area properties are FHA loans and VA loans. USDA loans are another type of loan that falls under this category, but they are available only for rural properties.
Chicago FHA Mortgage Loans
The FHA offers loans to buy or refinance 1 to 4-unit properties as long as at least one of the borrowers will be using the property used as collateral as their primary residence. It also offers loans to buy or refinance a property with funds to rehab it (as long as the foundation stays in place).
Chicago Reverse Mortgage Loans
The FHA also offers reverse mortgages, called HECM’s (Home Equity Conversion Mortgages). These are loans offered only to people who are 62 years old or older that do not require borrowers to repay either principal or interest for as long as they live in the property used as collateral as their primary residence.
Chicago VA Loans
These are loans insured by the Veterans’ Administration, as long as at least one of the borrowers will use the property used as collateral as their primary residence.
Best Chicago Mortgage Loan for You
Some people’s situation is so clear that they know right away which mortgage loan is the best for them. If you’re one of them and want to get more information, click the Apply button at the top. If you’re not, feel free to contact me.