The first family's Hyde Park neighbors currenltly have their house on the market.  The website www.5040greenwood.com has been said to have had over 10,000 hits.  The 6,000 square foot home with an adjacent coach house, is currently on the market for $1.85 million and has been getting attention and inquiries from across the world. This 17 room mansion has had inquiries from London, Singapore, Saudi Arabia, and New York to name a few.  The Obama Factor has been said to have drawn lots of attention for this home that was initially being offered for sale without a price.  This is a rare opportunity for the right buyer? Will it sell? To be or not to be that is the question.

In today's times of economic uncertainty more and more individuals are taking the opportunity to create additional streams of income.  I personally believe this is awesome.  However, when looking to purchase a home there are several things that Self-Employed individuals should consider.

•1.       Plan ahead. If you are entering the entrepreneurial world, be sure you set some short term and long term goals for yourself, so you can manage your income appropriately.  If you are looking to buy a home in the next few years, be sure to read #2.

•2.       The trouble with tax write-off's:  One of the benefits to being self-employed is that you avail yourself to more options for reducing your tax liability, better known as write-off's.  This can act as a double edged sword when it comes to applying for a mortgage.  If you write off all of your expenses during tax season and later apply for a mortgage, whatever you have reduced your income by is what the underwriter's will use as your income.  Ex.  Let's say your first year in business you made $35,000 but the business expenses you wrote off came to $15,000, the income that an underwriter will use for qualification purposes is $20,000.  We all know you can't buy much of a house on a $20,000 annual income.

•3.       Hire a Professional Tax Preparer or CPA: Treat your business like  a business and hire the needed professionals to help ensure your goals will be met.  When tax season comes around, it may be better to hire a CPA and give them an in-depth look into what your goals are over the next year.  This way they can help you take advantage of reducing your tax liability and still advise you, regarding your new home purchase in terms of how much you should write off or not.

•4.       The Corporation: When financing your mortgage everything is about your paper trail. If your business is structured as a corporation, be sure to pay yourself.  If the income that you receive goes directly into a corporate account, you need to be sure that you are paying yourself on a consistent basis.  Otherwise, the underwriter will have too much to try and figure out.  The harder the underwriter has to work, the more likely they are to deny your loan.

Taking a leap into entrepreneurship can be an awesome opportunity. However, plan ahead, getting professional help, and running your business like a business are all very important things to consider when you want to use this income for qualifying for a mortgage.  For more information visit www.ceceliaknowsmortgages.com 

$8,000 Tax Credit .......   Free Money for your family.  As of mid-September statistics show that more than 51,000 Illinois families have taken advantage of the $8,000 Tax Credit for 1^st Time Homebuyers in IL.  Nationwide, according to the National Association of Realtors, between 1.8- 2million new homeowners will have taken advantage of the credit this year.  If you haven't taken advantage of the credit this year, you still have time, but here are a few things to keep in mind. 

•1.       Short Sales: If you are going to meet the deadline of Nov.30^th, know that your negotiation process will need more time than a traditional offer, which may impact your ability to close in a timely manner.

•2.       203K Rehab Loans: This loan has become a hot product for 1^st time homebuyers looking to make repairs on properties they are purchasing.  If you are planning on using the 203K loan for purchase and repairs, your contracts need to be in now.  The process for underwriting, coordinating with contractors and having your loan clear to close is taking about 45 days with most of our lenders. 

•3.       Traditional loans: Conventional and Regular FHA loans should be well within reach of closing on time for you to receive your tax credit, but with that being said, make sure you stay in communication with your lender to ensure a timely process.

•4.       Applications are picking up as individuals are trying to beat the deadline, so be proactive as slots at title companies are filling up fast with closings.

The $8,000 tax credit is a huge benefit to those who are able to take advantage of it.  The credit has been said to reduce overall national inventory by about 30% and is stabilizing prices.  Now is the time to buy Real Estate.  Prices are low, interest rates are low, and the government is offering a huge incentive through the use of the $8,000 tax credit.  Don't be a shoulda, coulda, woulda.  Find your new home today, submit your offer, get the ball rolling.  The clock is ticking! Don't be left out of this wonderful opportunity.  For more information on mortgages and loan options visit my website www.ceceliaknowsmortgages.com Happy House Hunting

 So, for the last few weeks I have been scouring the internet to help an investor client find a lender to do a purchase / rehab loan for a 4 unit in IL.  He has great credit scores and money in the bank.  As I find myself at a road block, I thought I would ask my AR friends for help.  Does anyone have a lender who will do up to 65-70% ARV for a 4 Unit.  Contract recently accepted. Your help would be greatly appreciated.  I don't mind referring the client out if need be.  I really just want to make sure the client is well served. Please help! Thanks AR! Your assistance would be invaluable.

Cecelia Marlow - PanAmerican Mortgage, LLC

Did you know that buyer's can buy a HUD REO with as little as $100 Earnest Money.  This may be good news for some. The Atlanta Homeownership Center approved the use of this initiative for Illinois and Indiana for purchaser's using FHA financing.  This is specifically geared towards Owner Occupants, effective date Oct. 5, 2007. 

This incentive is not available unless it is presented on the executed contract presented to the closing agent.  For more information visit www.hud.gov click on HUD Homes and choose your state to see if it is applicable there.  This is a great incentive for Illinois and Indiana homebuyers! Happy Closings!

Need money for rehabbing the property check out my post on FHA $$$ for REO's & Bank Owned Properties.  Simple process for everyday consumers.

Cecelia Marlow - www.ceceliaknowsmortgages.com

  As a professional one of the most important things we can do is stay abreast of the changing market and flow with the tide.  The Chicago Real Estate Market, has become saturated with REO (Real Estate Owned) and Bank Owned Properties.  However, many people that I talk to don't know how to get to optimal financing for these properties.  With an FHA loan the property must be habitable and structurally sound.  With a Conventional loan, the client needs at a minimum 5% down and most MI (Mortgage Insurance) Co., want to see 10% down and a sizable amount of reserves. Even if a buyer can qualify for a conventional mortgage, many don't have the liquid cash to do the work they would like.  So, here's a solution for you.

FHA has a 203(K) Streamline loan that allows a buyer to purchase a property and get up to $35,000 for repairs and improvements.  So why is this such a great loan product:

1. A borrower can still minimize the size of their down payment at only 3%, which can be a gift from a seller Down Payment Assistance program through Oct. 1, 2008.

2. The program can be used for 1-4 Family Single Residences; including HUD REO

3. The borrower can still choose a fixed or adjustable rate mortgage, and their are no increases to the rate to acquire the rehab money.

4. Their is only 1 closing. 

5.  The funds can be used to: Update the home (including appliances, windows, doors, roof, paint, gutters, and down spouts, upgrade to plumbing, electrical, HVAC, exterior decks and patios, etc.) This loan can even be used for MOLD REMEDIATION AND LEAD BASE PAINT STABILIZATION. Note the funds can not be used for structural or foundational corrections.

6.  A general contractor / consultant is NOT needed.

This is a great loan and should help move a lot of inventory that is currently sitting on the market. 

For more information or assistance please visit me at www.ceceliaknowsmortgages.com

Hope this was helpful!