My wife and I are currently looking for a house hack in the Northwest, West, and Southwest suburbs of Chicago. We are interested in possibly using a Homestyle renovation loan to fix up a property. Our hope is to force enough appreciation to get out of PMI. We are currently in need of an agent that understands house hacking and is familiar with the areas we are looking in. We are also still looking for an lender experienced in Homestyle loans(we have one recommendation from our traditional financing lender). Thank you.
One thing to note with PMI the rules are a bit differant with 2-4 units then condos/single families. You can't get it off for 2 years even with a new appraisal and my last 4 unit it had to hit new appraisal showing 65% LTV to drop off PMI (it depends if it's a fannie or freddie loan, etc.)
The option my clients often do is to buy with PMI lender paid most investor friendly lenders you can negotiate something along these lines. It gives you more cashflow early on and most people are going to do a full on refinance/sell before PMI would drop off. Recast mortgage back out to 30 years on refinance.
To give context real life numbers same mortgage 10% down...
With PMI that can fall off eventually - total payment: $1940
With PMI rolled in lender paid: $1871
@Brian Weyer which suburbs specifically are you looking in? I have helped a lot of investors in Berwyn and Forest Park recently. I also just closed on in Elmwood Park that was a double digit COC house hack. The deals are out there, but you have to be patient in this market!
@ Henry thanks for the info and the tip. I didn't know some lenders did that.
@John warren we are looking in a large area that goes from Lagrange west to Plainfield north to St Charles east to Elmhurst. My wife refuses to live in the city or anything resembling it unfortunately.
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