On Thursday of last week the extension and expansion of the Homebuyer Tax Credit passed through the House of Representatives. On Friday the President signed it.
The bill extends and expands the $8,000 homebuyer tax credit through April 30, 2010. The bill also revises income limits and would allow a $6,500 "move-up" buyer tax credit for those who have lived in their current principal residence for 5 or more years. In addition, the bill will allow borrowers who have entered into a contract by April 30th to have 60 days (June 30th) to complete the transaction.
Additional Highlights of the updated bill:
Income limits increase to $125,000 for single and $250,000 for married $800,000 limit of cost of home Properties purchased by a dependent are now ineligible Purchaser must now attach proof of purchase of home to tax return Changes are effective on the date of enactment
If you have additional questions, please feel free to contact me:
Types of Illinois FHA Loans including Chicago, Streamwood, Naperville, Arlington Heights, Schaumburg, Northbrook, Mount Prospect and Glenview
Today's FHA Insured mortgage loan offers the flexibility borrowers are looking for along with the traditional benefits of low down payments, low closing costs, competitive interest rates, and easier qualifying ratios. The FHA mortgage can help you get the best and the lowest possible fixed rates for your mortgage and has helped a number of first time home buyers in getting a mortgage and buying the house of their choice.
Programs with an triple *** are programs that we currently offer. Visit our website for additional program information at http://www.MadisonMortgageguys.com.
***FHA 203(B):
The most popular FHA program is the 203b. The 203b is for 1-4 unit owner occupied purchase and refinance transactions. The reason for its popularity is the low down payment requirement (currently 3.5% of the purchase price) and the increased temporary maximum loan limits. You can search loan limits for your area here.
***FHA 234(C):
The 203c is the same program as the 203b except this program is for condos only.
FHA 203(H):
The 203h program is for disaster victims.
FHA 203(I):
The 203i program is for Outlying Areas which insures lenders against losses on mortgage loans used to
· purchase a proposed, under construction, or existing one-family dwelling, or · refinance a mortgage on an existing one-family dwelling in a rural area or a farm home located on 2.5 or more acres of land adjacent to an all-weather public road.
The statutory loan limit for the Section 203(i) program is 75 percent of the amount available under Section 203(b) and the LTV is the same as that of the Section 203(b) program.
***FHA 203(K) Streamline:
FHA's Streamlined 203(k) program permits borrowers to
· finance up to an additional $35,000 into their mortgage to improve or upgrade their home before move-in, and · quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser.
***FHA 203(K):
The Section 203(k) Rehabilitation Home Mortgage Insurance insures lenders against losses on mortgage loans used to
· purchase and rehabilitate an existing one- to-four-family dwelling (completed for more than one year) that will be used for residential purposes · refinance and rehabilitate such a structure and refinance the outstanding indebtedness (not applicable for Streamline (k)), or · rehabilitate a dwelling after it has been moved from one site to a new foundation (excluding manufactured homes).
Restriction: Section 203(k) should not be used unless the rehabilitation or improvement costs total a minimum of $5,000 (not applicable for Streamline (k)).
FHA 203(K) and 203(K) Streamline additional information:
Section 203(k) eligible improvements include items such as
· structural alterations (not applicable on Streamline (k)) · additions (not applicable on Streamline (k)) · reconstruction (not applicable on Streamline (k)) · remodeling (only minor remodeling allowed on Streamline (k)) · new siding · plumbing · painting · decking · heating and/or air conditioning · electrical systems · roofing · flooring and carpeting · energy efficient improvements · major landscape work (not applicable on Streamline (k)), and · pool repairs and pool fences.
Note: All health, safety, and energy efficient items must be addressed prior to completing general home improvements.
I think we will end with the FHA 203(K) and pick up with FHA Sections 203(n), 220 (d)(3)(A), 220(h), 223(e), 233, 238(c), 245(a), 247, 248, 251 and section 255 next time.
Qualify for an Illinois Mortgage Refinance: Conventional, FHA and VA including Chicago
Find out if now is the right time to refinance your Illinois mortgage! You may be able to reduce your monthly payments or reduce the life of your loan...by getting a lower interest rate or a new loan term. You may also be able to save even more if you use your refinancing to pay off credit card debt or other installment-type loans. That's because interest on your mortgage is tax-deductible, and the interest on other loans is not. Some key reasons to consider refinancing:
- Get a lower-rate mortgage. - Convert an adjustable rate mortgage to a fixed rate mortgage. - Consolidate a first and second mortgage into one lower rate mortgage. - Get cash for family needs and expenses.
Our most popular Wisconsin refinance and purchase programs offered are listed below:
Conventional/Conforming Refinance and purchase in Illinois: 90% Purchase Rate and term refinance Cash out refinance Debt consolidation refinance
FHA Refinance and Purchase in Illinois: 96.5% Purchase or 100% no money down purchase with gift funds Rate and term FHA refinance Cash out FHA refinance Streamline FHA refinance (FHA to FHA)
VA Refinance and purchase in Illinois: 100% no money down purchase Rate and term VA refinance Cash out VA refinance Interest Rate Reduction Refinance Loans (IRRRL) (VA to VA)
In the past, lenders have required at least 20% down payment on a Wisconsin or Illinois home loan. However, government mortgage programs only require you to put 3.5% down, or even 0% down in certain geographical areas of the Wisconsin and Illinois or if you are a veteran.
How Can I Buy With No Money Out of My Own Pocket with FHA?
FHA loans allow your down payment and closing costs to be a gift. This means if Mom or Dad, or other family members are willing to put up the money for your down payment and closing costs, you could potentially come to the closing table with none of your own money. As long as you can qualify for the loan and can make the monthly payments, gift money is ok.
What if I Don't Have Any Family Members Willing to Give Me Money to Buy a Home?
As a first time home buyer, if you purchase a home before December 1, 2009, you qualify for an $8,000 tax credit from the federal government. Also, with most government loan programs, sellers are allowed to contribute up to 6% of the purchase price towards closing costs as well.
How do I know if I qualify for a USDA Rural Housing Loan?
The first thing I would check is your eligible income. Depending on your family size, USDA Rural Housing loans have income limits. Secondly, you will want to check to see where you plan to purchase is Rural Housing eligible. There are geographical restrictions on these loans.
I've Heard You Need Cash Reserves to Qualify
Not always. Certain loan programs do not require cash reserves. Before, lenders required you had a few months cash reserves in the bank so you could still make your mortgage payment if you lost your job. Now, there are programs available that will allow you to spend every last penny in your bank account in order to close the loan, although we don't recommend you do that.
How Can I Find Out How Much I Can Afford?
To find out how much you can afford, send me an email, fill out one of our many online applications or give us a call. I will evaluate your financial situation and show you what you can afford with no obligation or commitment.
Illinois and Wisconsin FHA Identity of Interest Transaction (family member to family member purchase)
There's not a lot of information on this topic, so today I thought I would discuss what it is and what it means to you.
Not too long ago, purchasing a home from a family member and having them gift you equity so that you could get a better interest rate or lower loan to value was an easy task but that is no longer the case. Since conventional loans require 740 or better credit scores to even have a shot at the best mortgage rates, FHA has been picking up the slack. But there is a little known guideline that FHA has that conventional loans don't and that is the identity of interest rule.
Basically, if you are purchasing from a family member and the family member does not currently owner occupy that home, you as a purchaser, are limited to 85% loan to value. So, if you were planning on having ma or pa gift you 5 or even 10% equity but they don't occupy the property, you will have to come up with the other 5 or 10% yourself or have that family member lower the price of the home to cover the rest needed to get down to a 85% loan.
There are a few exceptions to this policy which you can read in the table below.
An identity of interest transaction is a sales transaction between parties with family or business relationships.
The maximum LTV ratio for identity of interest transactions on principal residences is restricted to 85 percent
Maximum financing above the 85 percent is permitted under certain circumstances. The table below describes circumstances in which financing above the 85 percent is permitted.
Exception
Description
Family Member Purchase
A family member purchases another family member's primary residence as its primary residence. If the property is not the family member seller's primary residence, the maximum mortgage is the lesser of
85 percent of the appraised value, or
the appropriate LTV ratio percentage applied to the sales price, plus or minus required adjustments.
Reference: For a definition of the term "family member," see below
Family member
A family member is defined as a borrower's
child, parent, or grandparent
spouse
legally adopted sons or daughters
child who is placed with the borrower by an authorized agency for legal adoption, and
foster children.
Note: A child is defined as a son, stepson, daughter, or stepdaughter.
Builder's Employee Purchase
An employee of a builder purchases one of the builder's new homes or models as a principal residence.
Tenant Purchase
A current tenant, including a family member tenant, purchases the property where he/she has rented for at least six months immediately predating the sales contract.
Note: A lease or other written evidence to verify occupancy is required.
The maximum mortgage calculation is not affected by a sales transaction between a tenant and a landlord with no identity of interest relationship.
Corporate Transfer
A corporation
transfers an employee to another location
purchases the employee's home, and
sells the home to another employee.
For detailed Wisconsin or Illinois FHA mortgage information, visit our FHA resource page or view our current FHA mortgage rates.
Ameristar Mortgage is your local Wisconsin and Illinois FHA mortgage broker:
No and low down payment mortgage in Illinois: FHA, VA and USDA
It wasn't that long ago that just about anyone could obtain a Illinois mortgage until we reaped the consequences of easy credit market. Now the bar is so high that obtaining a conventional mortgage is a nearly impossible with less than perfect credit. Even with 20% down, if your middle credit score (middle of three) is below 740, you will not receive the best interest rate available.
Now, with government sponsored programs, such as FHA, VA and USDA Rural Housing, you can still obtain a Illinois home loan with a low or no down payment.
Illinois FHA: Up until late 2008 you could get an FHA loan with no down payment but due to the overwhelming popularity, the program has changed more in the last year, than it has in the last 30. Even so, FHA is a great program and still only requires a 3.5% down payment. Closing costs and prepaid items, such as homeowners insurance and tax escrows, can be paid for by the seller if it is written in the initial offer to purchase. The snag, there are loan amount limits. View Illinois's FHA loan limits on our website. You can also read other FHA program requirements and view our current FHA mortgage rates on our site www.MadisonMortgageguys.com.
Illinois VA: For military veterans and current active duty members, this program is for you. You can view VA eligibility requirements online. The VA program requires no money down but closing costs and prepaid items will have to be paid our of pocket, unless you get a seller credit to pay for them. You can view VA program requirements and current VA mortgage rates on our website.
Once you obtain a VA loan, if refinancing makes sense to do, the VA streamline refinance program requires no appraisal and closing costs are less with a rate and term refinance. A VA cash out refinance will require a new appraisal.
The VA even has a jumbo VA program for loan amounts over the conventional loan limits. However, the VA jumbo program does require a down payment.
Illinois USDA: The USDA rural housing program is by far one of my favorites. It also has the most restrictions. The first being that you must fall within USDA's income limits for the area you wish to purchase. You can view Illinois's USDA's income limits on our site. The second hurdle is USDA's eligible areas. There are pockets throughout Illinois where USDA will not let you use their loan program. Mostly larger cities such as Chicago or Cook County as a whole. You can view ineligible USDA areas by clicking on the county where you plan to purchase. If the county is un-clickable, then the entire county is eligible.
The reason this program is my favorite, is that there is no down payment required. If the house appraises for more than the purchase price, you can also roll in closing costs and prepaid items into the loan, up to 100% of the appraised value! There is no other program that allows you to do that. You can view detailed USDA program requirements and current USDA mortgage rates on our site.
To prequalify for an FHA, VA or USDA mortgage please contact me:
Illinois mortgage rates, Lyons, Markham, Melrose Park, Midlothian, Morton Grove, Mount Prospect VA, Niles, Norridge, Northbrook, Northfield, Oak Lawn, Orland Hills, Orland Park, Palatine, Palos Heights, Palos Hills, Palos Park, Park Ridge, Phoenix, Prospect Heights, Rolling Meadows, Rosemont, Schaumburg, Schiller Park, Skokie, Barrington, South Barrington, Streamwood, Tinley Park, Westchester, Western Springs, Wheeling, Willow Springs, Wilmette, Winnetka, Worth, Chicago, Arlington Heights, Bartlett, Brookfield, Buffalo Grove, Burnham, Country Club Hills, Countryside, Crestwood, Des Plaines, Elk Grove Village, Elmwood Park, Evanston, Chicago FHA, Flossmoor, Forest Park, Glencoe, Glenview, Glenwood, Hanover Park, Hickory Hills, No Down Payment Hoffman Estates, Indian Head Park, Inverness, La Grange, USDA Elmhurst, Northbrook, Shorewood, Bloomington Normal, Zion, Round Lake Beach, Grayslake, Gurnee, Waukegan, North Chicago, Libertyville, Mundelein, Lake Bluff, Wauconda, Cary, Lake Zurich, Deerfield, Lake Forest, Highwood, Vernon Hills, Highland Park, Roselle, Itasca, Wood Dale, Bloomingdale, West Chicago, No Money Down Carol Stream, Glendale Heights, Addison, Lombard, Glen Ellyn, Wheaton, Winfield, Highland Hills, Warrenville, Lisle, Naperville, Downers Grove, Oakbrook Terrace, Oak Brook, Hinsdale, Clarendon Hills, Westmont, Burr Ridge, Willowbrook, Daren, Woodridge, Franklin Park
If you are considering an Illinois home loan refinance, the first steps are to determine your short and long term goals and then to evaluate the different types of home refinance loan programs available. Refinance loans are available to obtain better interest rates and terms on your existing restaurant or cash out a portion of your equity in property.
Below you will find the most popular refinance programs offered by Ameristar Mortgage:
Conforming FHA: Rate and term refinance Cash out refinance Debt consolidation refinance
FHA Refinance: Rate and term FHA refinance Cash out FHA refinance Streamline FHA refinance (FHA to FHA)
VA Refinance: Rate and term VA refinance Cash out VA refinance Interest Rate Reduction Refinance Loans (IRRRL) (VA to VA)
There are several reasons to refinance your home:
1. To lower the interest rate on your mortgage, reducing your monthly payments 2. To reduce the term or length of your loan 3. Consolidate your debt 4. To draw on the equity built up in the house to get cash for a major purchase, vacation, business venture etc. 5. Have an adjustable rate mortgage (ARM) and want a fixed-rate loan to have the certainty of knowing exactly what the mortgage payment will be for the life of the loan
It is better to refinance if you can get an interest rate at least two percentage points lower than what you are currently paying. However, every situation is different. Most people would consider a savings of $100 or more a month to be worthwhile too. Here are some things to consider:
1. How much can I lower my current monthly payment? 2. How much will I pay in refinancing costs? 3. How much will I still owe on the house? 4. How much am I currently paying each month? 5. How much did I initially pay for the house?
There are other considerations, too, such as how long you plan to stay in the house. Most sources say that it takes at least three years to realize fully the savings from a lower interest rate, given the costs of the refinancing. Itemize all the expenses of the refinance and estimate your new monthly payments. Answering these questions can help you to decide if you should refinance. Visit our refinance calculator to find out how much you will save by refinancing your loan.
Illinois refinance and cash out refinance mortgage loans are available for condos, single-family homes, or multifamily buildings of up to four units. Cash out refinance loans provide the flexibility and variety so that individuals can meet a diverse range of needs, such as: obtaining cash for home improvements or major purchases paying off high interest rate debt (credit cards, auto loans, etc.). In addition to all of these features, cash out refinance loans may also be customized to allow the borrowers in special circumstances to use the proceeds of the refinance transaction to buy out the equity of a co-owner.
Illinois FHA refinance mortgage loans are also becoming increasingly popular among home owners trying to refinance out of subprime loans. The FHA refinance loan is a great mortgage option for homeowners who want to tap into their home equity and use the funds for other personal needs. An FHA refinance loan has to fit within the loan amount limits that the FHA sets for the county that you live in.
FHA streamline loans are only available to current FHA-insured homeowners who wish to reduce their monthly payments, however FHA refinance loans are also available to borrowers who have conventional or even subprime mortgages.
VA refinance loans offer veterans a great opportunity to refinance with no money down. VA cash out refinance loans are available for homes that are your principal residence and can be a refinance from a subprime, conventional or prior VA mortgage. If you currently have a VA mortgage and do not require cash out, then you may be eligible for a streamline VA refinance. These loans are also known as Interest Rate Reduction Refinance Loans (VA IRRRL) as these loans are designed to adjust the interest rate on VA home loans with limited documentation.
For additional refinance information visit out Refinance page on our website.
Ameristar Mortgage is your Illinois Mortgage Broker:
Illinois first time home buyers returning to FHA loans: Chicago, Streamwood, Mount Prospect, Glenview and Vernon Hills
FHA mortgages are becoming popular again in Illinois! It's an institution that has been around for a long time, since June 27, 1934. The Department of Housing & Urban Development folded the Federal Housing Administration (FHA) under its umbrella in 1965.
Blemished Credit History If your credit is less than perfect, FHA might be the loan for you. You may qualify for an FHA loan even though you have had financial problems.
The Illinois FHA Program applies to owner occupied properties and can be utilized multiple times:
You can qualify for 1 to 6% credit toward: earnest money, application fees, mortgage insurance and tax credit
There are minimal or no money down loans
Any buyer not just the first time home buyer
A co-mortgager or co-signer can be a non-occupant
Interest rates are lower and are equal to or better than normal financing
FHA can qualify for one to four unit properties and HUD approved condos
There are NO reserve requirements (unlike conventional which requires 1or 2 month reserves)
Gift funds are allowed for the entire down payment but must be a family member
The maximum allowed amount for new FHA is $417,000.00 with a 3.5% down payment and mortgage insurance premium
Only the VA and FHA loans are assumable (could be an advantage to either buyer or seller)
Illinois High Cost Areas:
$410,000 Loan Amount Limit Cook County, DeKalb County, DuPage County, Grundy County, Kane County, Kendall County, Lake County, McHenry County and Will County
$339,250 Loan Amount Limit Boone County and Winnebago County
$281,250 Loan Amount Limit Bond County, Calhoun County, Clinton County, Jersey County, Macoupin County, Madison County, Monroe County and St. Clair County
The above loan limits are for single family homes. 2-4 family properties have different maximum loans amounts.
No Money Down FHA VA Rural Housing in Chicago, Orland Hills, Elmhurst, Streamwood, Glenwood and Carol Stream Illinois
Illinois no money down loans are risky because you are starting off with no equity in the property. They are a colossal risk for the lender, therefore, any one that applies for one of these programs must have extensive documentation to prove their eligibility.
The three primary no money down mortgage solutions that we facilitate are USDA rural housing loans, FHA loans, and VA loans.
FHA, VA and USDA are also the best form of financing for Illinois no money down home mortgages.
Visit our no money down mortgage page for additional Illinois no money down program requirements.
Option 1: Illinois FHA Loans Although this isn't a "No Money Down" option, the FHA loan is by far one of the best alternatives for people who want to buy a home and don't have much money to put down. With an FHA loan, you could put down as little as 3.5%. Plus, FHA loans are easier to qualify for.
Now, 3.5% may seem like a lot to come up with, but many people find that when they put their minds to it, 3.5% is actually possible. While you can't "borrow" the 3.5%, you can get a "gift" from a family member or borrow from your 401k.
FHA loans do have requirements and restrictions. Not all townhomes and condos qualify, and there is a maximum loan amount you can get based on where you purchase. FHA is the way to go if you've got the 3.5%..
Option 2: Illinois USDA and VA Loan Programs The USDA and VA loan programs offer full 100% financing right now that will also allow the seller to pay all your closing costs. The USDA loan is primarily used to help low/moderate-income families and individuals purchase homes in "rural" areas. View current income limits (PDF) and ineligible areas in Illinois .
The VA offers no money down financing to most veterans depending on length of service. The seller or builder can pay all your closing costs and you have a low monthly payment.
Option 3: Lease-To-Own With a lease-to-own, you essentially lease a home, but make larger payments in order to begin accumulating a down payment. For example, if a house would normally lease for $900, you might lease it for $1,100/month, with $200/month going into a special account. At the end of a specified period (usually 12-36 months), you buy the home using the money in that special account as your down payment. However, if you decide somewhere along the line not to purchase the home, all of the money in the special account then goes to the seller.
Think of this option as renting with a forced savings account. If you can find someone willing to do this, it's not a bad option. However, most people who are selling their homes need their money out of it in order to buy their next home, so finding someone who is willing to lease to you may prove more difficult.
If you'd like to know more about your financing options give me a call or send me an email.
FHA, VA and Rural Housing Loans in Chicago, Waukegan, Naperville, Joliet, Schaumburg, Arlington Heights, Northbrook, Mount Prospect and Glenview Illinois
Illinois no down payment home loans enable those who have not been able to save for a down payment to realize the dream of home ownership. Ameristar Mortgage offers three mortgage programs still available with no money down 100% financing for all Illinois residents:
FHA Loans
VA Loans
Rural Housing Loans
Illinois FHA Loans:
FHA loans are federally insured loans that allow buyers who have little or no credit history, coupled with limited funds available for down payment, to obtain a mortgage with a great interest rate and low monthly payments. FHA home loans are also available for first time buyers. FHA Loans are assumable and streamline refinancing to lower the interest rate is available.
Illinois VA Loans:
VA loans continue to be eligible for 100% financing, of course only those few borrowers with a VA Certificate of Eligibility are able to qualify for this loan. In addition to no down payment, VA home loans have the added benefit of not requiring PMI or private mortgage insurance. VA mortgage loans are guaranteed by The Department of Veterans Affairs, but are made by private lenders to eligible veterans for the purchase of a home. VA loans offer up to 100% financing on the value of a home.
Illinois Rural Housing Loans:
Rural home loans are optimal for firs time homeowners in approved Rural Housing Service areas. USDA rural housing loan programs allow qualified homebuyers to get loans with minimal closing costs and no down payment. The purpose of this loan program is to enable eligible low and moderate income (up to 115 percent of the Area Median Family Income) rural residents to acquire modestly priced housing for their own use as a primary residence. The Guarantee Rural Housing Loans also have flexible credit standards, expanded qualifying ratios, no maximum purchase price limits and generous income limits. Closing costs, prepaids and lender required repairs can be rolled into the loan amount up to 100% of the appraised value (not the purchase price).
A no money down mortgage loan is an excellent choice for a home buyer, who may not have enough money for the standard 20% down payment.
Visit our website at http://www.madisonmortgageguys.com for additional No money down FHA, VA and Rural Housing loan program information.
Your Illinois mortgage broker, offers first time home buyer, 80/10, cash out refinance, jumbo loans, construction, no money down, current Illinois mortgage rates, refinance, 100% financing, interest only, investment, my community mortgage, 2nd mortgage, FHA mortgage loans, VA loans and rural housing loans.
Visit us online at www.MadisonMortgageguys.com
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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