First time buyer. Looking for a good bank w/ FHA options

Chicago, IL · Member since 2017 · 78 posts · 10 votes

Hello everyone! Chicago native here. I'm looking to apply for my first home loan and buy my first multi-family property using the FHA loan. Does anyone have any recommended banks for first time home buyers? Please let me know. Thanks!

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Brie SchmidtBusiness Member

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Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes

@Byron W. - I would also explore the 5% HomePossible loan over FHA.

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Second City Real Estate4.821 Reviews

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PJ Kolnik
Chicago, IL · Member since 2017 · 81 posts · 87 votes
8y
Byron most lenders will do an FHA loan, some are more experience than others though. I worked with Aaron's Goesser at Loan Depot and he did a great job.
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John Warren
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
8y
@Byron W. I also use Josh Jones with Loan Depot. I have had excellent success with Loan Depot both personally as well as for my investor clients.
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Chris MasonPro Member
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Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
8y
Reach out to @Jeff Dulla, he's a lender in your neck of the woods and as a BP member he will have the answers to the REI-specific questions you might have.
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Quincy P.
Saint Paul, MN · Member since 2016 · 34 posts · 7 votes
8y
Definitely shop around. I was told more than once that once your credit is pulled you have 30-45 days for credit inquiries without additional hits to your credit score. I used this approach on my last purchase and haven’t noticed a sharp drop yet. BP community speak up if you have experienced otherwise.
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Harjeet BhattiPro Member
Lender · Glenview IL- CDLP NMLS#230554 · Member since 2015 · 2k+ posts · 747 votes
8y
You can explore the option of Home Possible which has 5% down payment. You don't have to pay UFMIP fee.
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Jeff Dulla
Lender · Western Springs, IL · Member since 2015 · 472 posts · 245 votes
8y
@Byron W. @Chris Mason Thank you for the mention Chris. Byron - no pressure whatsoever but let me know if you would like to chat. You can also PM me if that is easier. I have a decent amount of investors so it is something I deal with regularly. My last connection through BP acquired a four unit in Forest Park using FHA financing, for reference.
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Brie SchmidtBusiness Member
Moderator
Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
8y
@Byron W. - I would also explore the 5% HomePossible loan over FHA.
Podcast Guest on Show #132
Second City Real Estate4.821 Reviews
Website View Page
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Cristina Gonzalez
Chicago, IL · Member since 2018 · 6 posts · 1 vote
8y
Erik Johansson and Matt Roder with bemortgage do FHA all the time. They have awesome reviews as well. Those are my go-to guys in the industry.
I also agree that looking into Home Possible would be a smart idea. You can get a grant to help you cover costs.
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Weston Harding
Real Estate Broker · Chicago, IL · Member since 2017 · 179 posts · 65 votes
8y
Hey @Byron W. Congrats on taking the next steps to purchasing you're first multi-unit! My Team and I specialize in multi-units on the north and northwest side. Our clients love their experience working with @Michael Facchini and the knowledge he brings.
I would reach out to him to talk about FHA v. Home Possible v. conventional and all other financing options that are available.
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Jeff Dulla
Lender · Western Springs, IL · Member since 2015 · 472 posts · 245 votes
8y
@Byron W. Yes - any time you can go Fannie/Freddie, I would argue it's less costly. Most lenders will follow the income restrictions for Freddie. Some areas are in census tracts that will allow for no income limit. Here is the search tool:
http://www.freddiemac.com/homepossible/eligibility.html
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Michael Facchini
Lender · Chicago, IL · Member since 2017 · 438 posts · 193 votes
8y
Appreciate the kind words @Weston Harding! @Byron W., as mentioned here, you'll want to consider FHA and HomePossible, weighing the pros & cons between both. To help determine which might be the right fit for you (if both are an option), you'l'l want to give thought to your short-term and long-term plan with this property, as well as other property investment goals down the road. You might also look at some State and City grants to help with down payment. Any questions, don't hesitate to reach out!
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Byron W.
OP
Chicago, IL · Member since 2017 · 78 posts · 10 votes
8y
Thanks everyone! I didn't even know the Home Possible program was a thing. After researching it, that's definitely what I'd prefer to do. @Jeff Dulla @Michael Facchini I shot you both messages.
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Erika Carter
Residential Real Estate Broker · Chicago, IL · Member since 2014 · 155 posts · 42 votes
8y
I wish you well on your new investing path! Also, make sure you check out local lenders!
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Dan Gongora
Realtor · Saint Petersburg, FL · Member since 2016 · 92 posts · 34 votes
8y
Hi Byron, I’m fellow investor myself In 2014 and 2017 I did exactly that. I bought a multi family property with a FHA loan. I house hacked them both. I recommend Zack Karp he’s great! I’m a real estate agent as well. Let me know if I can be of service or if you need me to send you some listings with your criteria. I hope I can help!
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Guillaume Fortina
Chicago, IL · Member since 2017 · 4 posts · 0 votes
8y
Do you get the Home Possible loan from a regular mortgage broker? Or do you have to go through Freddie Mac directly?
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