Experience with HomeStyle Loan in Chicago

[Porsha Fross]

Hi everyone! I am currently in the market for land where I can build a new construction (ground-up construction).

I recently read about the HomeStyle loan on BiggerPockets and wondering if anyone in Chicago has had experience they can share?

My biggest concern is finding the right contractors. We’re just starting out so we don’t have a huge network, but think we can leverage 203kcontractors.com as a good starting place since this is a similar type of loan.

[Eudith Vacio]

Hey @Porsha Fross 👋🏽

It sounds like you might be looking for a construction loan rather than a rehab loan - I've done a 203k loan and I will highly recommend that you get quotes from multiple general contractors and make sure that they've done 203k's before and if not, make sure they understand what is required. You should also have your lender help you understand what the loan entails. I changed my scope of work multiple times and initially didn't think I could and I was able to change my timeline, too. What I thought I would finish it 6 months took 1 year and part of the reasoning for that was because I changed my general contractor a few times after I purchased the property