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UP TO $6,000 FOR YOUR DOWN PAYMENT -- FREE
The Illinois HOME START Loan Program is NOW available and offers below market rates and down payment assistance for first time homebuyers and Veterans. First time homebuyers and individuals that have not owned a home in the previous three years are eligible based upon household income, family size, and sale price of the home. the HOME START Down Payment Assistance Loan is a 0%, 10 year forgivable loan that provides 3% of the purchase price (up to $6,000) to assist with down payment. This loan is only available when used in conjunction with the 30 year fixed rate loan and has a current lowered rate of 5.25%. This loan program may also be used in addition to the Federal Home Purchase Tax Credit. Funding is currently ample but limited. For details and further information on how to qualify email with your name, phone number, and current address.
WHAT IS A GOVERNMENT-INSURED FHA MORTGAGE?
An FHA loan is insured by the Federal Housing Administration which allows approved lenders to offer loans with fewer restrictions and greater flexibility than conventional mortgages. FHA loans require as little as 3.5%, as of January 1, 2009, for a down payment and have been popular with 1st time homebuyers and for refinancing. With new higher loan limits ($271,050 in most local areas) this is now a desirable option for higher property values. Check with your lender for the latest FHA information and mortgage loan programs available.
ADVANTAGES OF AN FHA MORTGAGE
These fixed rate loans are government-insured and easier to qualify for compared to conventional mortgages. Down payments and closing costs may be lower than conventional mortgages and an FHA loan can be up to 97 percent of the home value. With the many changes over the last year the qualification and approval process is also quicker and easier.
WHAT ABOUT REFINANCING?
You may be able to get up to 97% of your home's value, which gives you the opportunity to get extra cash out -- for any need -- and take advantage of a fixed rate that is lower than a personal loan or other credit sources. (Cash out loans are not available if you are refinancing an existing FHA loan.)
NEED A LOAN THAT INCLUDES THE NECESSARY FUNDS FOR FIXING UP A PROPERTY?
The FHA 203(k) provides a cost-effective, single-close loan that enables borrowers to purchase a home that may need repairs, refinance their existing home for the purpose of remodeling, or move an existing home onto a mortgaged property. The loan is based on the "as completed" value of a home and allows up to six months for completion of the rehabilitation construction. Not all lenders have this program available, and not all are experienced. For details of the program and contact information for the lender who knows 203(k) just email with your name, phone, and current address.
OTHER FHA REFORMS
FHA's manufactured housing program has been modernized to include higher loan limits and changes in insurance coverage and underwriting. FHA home-equity conversion mortgages, or reverse mortgages, will now allow seniors to purchase a home and obtain a reverse mortgage in one transaction. At the same time, the minimum down payment on FHA loans will increase from 3 percent to 3.5 percent. And while down payment assistance from family members, government programs and charities is allowed, seller-funded down payments will be prohibited. VA loan limits will match other stimulus loan limits through 2011.
FHA RULE CHANGES FOR CONDOS
Condo loans have been much more complicated and while the use of FHA loans to buy houses has tripled, certain restrictions may have kept condo buyers away. FHA previously regarded condos as multi-family units, requiring the entire building be FHA approved, but now condos will be treated like a single-family home, making buying easier.
IMPORTANT TAX CREDIT UPDATE
Current law provides up to a $8,000 tax credit to a first-time home purchaser, and up to $6,500 tax credit to current homeowners looking to move, with a purchase contract by April 30, 2010 and a closing by July 1st.
Combine this with the Illinois Home Start program for 1st time buyers and you get up to $14,000 for purchasing a home -- but you need to act quickly to take advantage of this free money. Don't miss this once-in-a-lifetime opportunity. For details and further information on how to qualify email with your name, phone number, and current address.
As your Personal Realtor an important part of my job is advising and guiding you through the home buying or home selling process. That includes financing. Above is some basic information about government-insured FHA mortgages which I hope will be helpful in the process of applying for a mortgage loan, but there is no substitute for a direct relationship with a mortgage lender of your choice. A mortgage is a complicated transaction, but there is no reason for it be be difficult. Please don't hesitate to ask me and your lender for help if there is something you don't understand. Or apply online with one of my recommended lenders.
For a list of mortgage lenders in the Rockford area and this weeks interest rate information -- see my weekly mortgage rates update.
If I can be of help to you in buying or selling a home please don't hesitate to call at 815-381-6850 or email. |
