Hoffman Estates IL Townhomes - What type of financing are buyers using?

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Real Estate Agent with RE/MAX Suburban

There has been much confusion lately it seems on the advantages and exclusive use of FHA financing and I wanted to check & see what is going on in our area.  As all real estate is local, let's see what is going on just in Hoffman Estates IL townhomes.  (I mean condos, duplexes, manor homes, coach homes, etc. in this reference).

What I found was actually quite eye opening as what the media spin would like us to believe and what is actually closing are two different things.  Two good financing posts recently are very conflicting.  John Mulkey, did a post on the major use of FHA financing from the head of FHA.  There are worries that the system might be overtaxed, overused and could lead us again into financial disaster.  

Another point of view from a loan officer, Janet Guilbault states that FHA loans are such a financing staple now (crack heads reference) across the nation, it better not being going anywhere soon!  When it comes to Hoffman Estates IL Townhomes and our area - FHA has always been a valuable financing option just because of the low down payment to qualify.  With the new lending guidelines, FHA is also much more lenient as far as credit scores, dings on your credit (which is just called life), and slightly higher qualifying ratios.  

So here is what we have for financing types for Hoffman Estates IL townhomes -

hoffman estates IL townhomes,

Cash - I guess it is still king. This really surprised me.  If buyers are so cash strapped why are there so many cash transactions?  Maybe buyers aren't so broke after all?

VA Loans - I thought that more buyers would have taken advantage of this great opportunity with the lowest amount down available.  

Conventional Loans - what this shows us is that more buyers actually have a larger down payment and are choosing to go conventional side stepping mortgage insurance or not have to pay FHA mortgage insurance for the life of the loan.  Again, tells us that maybe buyers have a larger down payment after all?


If you are thinking of selling your Hoffman Estates IL townhome or purchasing a townhome in or near Hoffman Estates, please give me a call so we can discuss financing and any other questions you might have.

FHA Approved Communities
FHA Loan Requirements
Mortgage Terms Glossary
8 Steps to Getting your Finances in Order
Buyer Closing Costs

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lyn sims remax suburban  Lyn Sims    Schaumburg IL Area    Northwest Chicago Suburbs  ●  (847)230-7324
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Rainmaker
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J. Philip Faranda
J. Philip Faranda (J. Philip R.E. LLC) Westchester County NY - Briarcliff Manor, NY
Broker-Owner

Lyn,

We've seen more cash transactions ourselves, and I think that in a down, credit stressed market more people with cash see opportunity. It isn't necessarily the rich, but parents, for example, investing some of their nest egg into holding a mortgage for their children. That is far more stable than many of the crazy stuff on Wall Street. 

Jun 01, 2010 02:46 AM #1
Rainmaker
1,559,369
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

J. Philip:  That's an excellent point.

Jun 01, 2010 05:40 AM #2
Rainmaker
1,334,748
Michelle Gibson
Hansen Real Estate Group Inc. - Wellington, FL
REALTOR

Lyn - I recently did a report for my area and I was shocked that 49% of buyer's paid cash in April.  I think so many people assume everyone is doing FHA.  Great Report!

Jun 01, 2010 07:55 AM #3
Rainmaker
1,559,369
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Michelle:  What we are told and what is really going on in the market are 2 different things.  Obviously the same is going on here which is not what I expected.

Jun 01, 2010 07:56 AM #4
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Rainmaker
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Lyn Sims

Schaumburg IL Real Estate
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