New Loan Limits - Chicago

8 Replies

YAY!  Loan limits have been increased for Chicago on conventional loans!  This means the 5% down, 20% down, and 25% down loan programs.  My bank can start using the new loan limits as of December 3rd.  Message me for details on how this impacts your house hacking ability.  

@Michael Facchini - I wish it was higher, I still run into loan limit problems all the time.  But it is a good increase and will help many buyers in Chicago 

I'm closing on a 3 flat in Logan Square next week using an FHA loan. Even with the loan limits higher, the self sufficiency test still is a big obstacle in a lot of areas, not impossible but challenging.

Originally posted by @PJ Kolnik :

I'm closing on a 3 flat in Logan Square next week using an FHA loan. Even with the loan limits higher, the self sufficiency test still is a big obstacle in a lot of areas, not impossible but challenging.

FHA loan limits were not increased, just conventional.

Newer to investing here in Chicago - Can you provide an example of what kind of benefit this provides to the buyer?

Thanks!

@Lee Ribeiro - higher loan limits opens the door to more properties.  Many areas of the city are priced way higher than the limits which means you need the cash between the price and the limit 

@Brie Schmidt , how does one qualify for a 5% conventional loan? Is that better than 3.5FHA or less hoops to jump through than a FHA loan?

@Joe Mende - I am not a lender so you would need to talk with them. But the 5% program is less PMI and no UMIP but it is only available n certain areas and if you do not currently own property

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here