Schaumburg IL Homes - What types of financing was used?
While compiling this year end report for 2011 the total sales in Schaumburg IL I noticed a few striking differences between Schaumburg single family homes and multi-family home sales.
Two completely different animals!
Depending on what type of property you have will figure into your buying or selling strategy. Types of financing that buyers use have different criteria and variables that sellers must pay attention too. On FHA purchases the home must have minimum standards to protect the buyer from unknown future mechanical breakdowns. When the appraisal is done on these properties the appraisers check the attic spaces, crawl spaces and any basement areas not readily available. This has never been done before but it's been a trend since the last half of 2010.
For foreclosures in Schaumburg, the furnace and water heater must be operational and the water must be turned on. This eliminates some foreclosures immediately that need serious help from either being vacant, lack of winterizing or seller damages. These poor homes must be bought with cash and then refinanced when the home meets lender standards. Frequently you'll be getting a dream deal but you'll be in for a boat load of work and you better know the business side of a hammer! These homes are usually not for the first time home buyer.
So with Schaumburg Homes the largest portion of sales has gone conventional financing.
If your Schaumburg Home needs a new roof, forget about FHA financing as this is also considered a mandatory requirement. Life expectancy of at least 5 years is required for all roofs.
With Schaumburg Multi-Family Homes the largest portion of sales was conventional andcold hard cash coming in neck and neck. Who says cash is dead? Well I'm sure it was me at one time as I can't remember meeting so many buyers with cash in their hands and at their disposal!
It clearly has to do with the price differential between the Schaumburg home and condo pricing. Many more condos are available below $150,000 than homes. Still most first time home buyers will be using the FHA financing method because of the lesser down payment required (3.5%). But, conventional financing (5% down is now available) might be better for you as the mortgage insurance premiums are lower and will not be for the entire 30 year life of the loan.
Another important note to remember is not all Schaumburg complexes or subdivisions are approved for FHA financing. This would include townhome styles, quads, manor homes, coach homes and a variety of others. Please see if the area you are interested in is FHA approved. Many a heart has been broken with a first time buyer when they realize the complex they love will not accommodate their FHA financing.
If you are thinking of buying a Schaumburg Home, please consider me as a 'buyers agent' for your purchase. An experienced veteran, like myself, can steer you through the 'mine field' on your way to your first or tenth home!
If you are researching this information to possibly sell your Schaumburg IL Home, please email or call to discuss the advantages of my marketing abilities and getting your home turned to 'SOLD'.