Looking for first time loan - Chicago, IL

[Miljan Vukovic]

Hello BP community,

I am a just starting in the Real Estate and am looking for a loan to allow me to purchase a first time home and renovate it. I have cash on hand (<$10K), so the loan would need to be able to support the cost of the home and the contractor work. 

Trying to understand if I should go through my bank or what my other options are. To be clear--I am not asking for a loan or lender, just looking to understand what my options are. 

Thanks in advance for any help,

Miljan

[Brie Schmidt]

@Miljan Vukovic - You can only get the closing costs covered if the property appraises for the purchase + closing costs, so something you will not know until about 10 days before closing.

Let's just say you want to buy a $300k property - you will need:

$10,500 - down payment for FHA

$3,200 - upfront fees (inspection, appraisal, insurance)

$8,500 - closing costs

$2,300 - reserves

Total $24,500 in available funds.  When I say available funds I mean cash or 401k.  If you get the credit then that and the reserves is just something you need to show on paper that you have access too, you would only pay for the down payment and upfront fees out of your pocket.