FINANCING NEEDS

CHICAGO RELOCATION MORTGAGE LOANS AND HOME FINANCE

Relo­ca­tion does NOT require cor­po­rate spon­sor­ship of the relo­cat­ing employee.  A corporate-sponsored relo­cat­ing employee is defined as an employee who is trans­ferred by a cor­po­ra­tion or a newly hired employee of a cor­po­ra­tion, who is seek­ing to finance the pur­chase of a pri­mary res­i­dence at the new job loca­tion, and is spon­sored finan­cially by the cor­po­ra­tion in some way.

CHICAGO RELOCATION MORTGAGE ELIGIBILITY CRITERIA

In the case of the Chicago cor­po­ra­tion actu­ally spon­sor­ing the relo­cat­ing employee, the fol­low­ing is a rule-of-thumb guide:

• Spon­sor­ship must be at least the lessor of $5,000, 10% of the borrower’s gross annual salary, or 3% of the loan amount.
• The loca­tion of the borrower’s new employ­ment must be at least 50 miles from the prior location.
• The bor­rower must sub­mit writ­ten proof from the cor­po­ra­tion of the cor­po­rate spon­sor­ship such as an offer let­ter.  The employer’s offer let­ter must be received on com­pany let­ter­head ref­er­enc­ing the borrower’s hire date, salary, posi­tion and start date, signed by the employer’s Human Resources representative.

Eli­gi­ble prop­erty would be lim­ited to SFR/1 Fam­ily (includ­ing con­do­mini­ums, co-ops (IL, NJ and NY only) and PUD) type of homes.  Multi units would gen­er­ally not be per­mit­ted.  Credit score require­ments are slighty higher than non-sponsored relo­ca­tion in the case of  a trail­ing sec­ondary wage earner’s income being uti­lized for qual­i­fi­ca­tion; an employer-provided inter­est rate buy down; a bridge loan needed for qual­i­fi­ca­tion etc.  Sev­eral mort­gage loan pro­grams are obso­lete when using spon­sor­ship fea­tures includ­ing Com­mu­nity Lend­ing Loans, FHA/VA Loans and any FNMA/FHLMC auto­mated approval.  Man­ual under­writes are usu­ally the only accept­able source of approval.  Other lim­i­ta­tions in LTV and Debt ratio cal­cu­la­tions also apply.

Relo­cat­ing to Chicago With a Trail­ing Spouse

Trail­ing Co-Borrower Income can be used for qual­i­fy­ing pur­poses but may encounter restric­tions on how much income is counted.  Some pro­grams allow the entire salary to be uti­lized, some allow as lit­tle as 30%.  The sec­ond chal­lenge can be cash reserves of the bor­rower depend­ing upon the sta­tus of the cur­rent res­i­dence, the down pay­ment on the new res­i­dence and the like­li­hood of gain­ful employ­ment in the new area (Chicago we assume!).   Self employed trail­ing co-borrowers are inel­i­gi­ble to uti­lize income for loan qual­i­fi­ca­tion as no his­tory of a self-owned busi­ness income can be sup­ported when mov­ing to a new market.

Chicago Cor­po­rate Relo­ca­tion Sponsorship

Should a cor­po­ra­tion NOT spon­sor the relo­ca­tion to Chicago and not pro­vide any finan­cial ben­e­fit to the relo­cat­ing employee, the mort­gage loan and financ­ing is eli­gi­ble for, and struc­tured like, any other local home buyer pur­chase trans­ac­tion.  Depend­ing upon for what the bor­rower will qual­ify, all mort­gage pro­grams avail­able for Chicago locals will be avail­able for the relo­cat­ing employee.  The employer’s offer let­ter must be received and reviewed by the loan offi­cer and all other stan­dard guide­lines must be met.