Up to $27,000 in grant money - Homes For Sale In Aurora, IL
Looking for a hot deal to buy a home in Aurora, IL? The City of Aurora now offers first time buyer incentives.
Down payment assistance allows buyers to keep more of their money in their pockets and can allow buyers to afford a larger home. The Illinois Housing Development Authority (IHDA) program provides $5,000 in down payment assistance as either a forgivable grant or 0% interest loan. The City of Aurora has received funding to add $2,000 additional on top of the $5,000 grant to buy a home. This totals to $7,000 in home buying incentives for Aurora IL buyers.
There are 3 basic requirements for eligibility. First, the home needs to be vacant. There are no shortage of homes on the market currently that meet this criteria. Second, the buyer must be a first time buyer. A first time buyer is anyone who hasn't owned a home in the last 3 years. Thirdly, there are household income requirements. Anyone making more than $80,000 may not qualify for the full $5,000 but the amount qualification amount increases with family size. You may be asking right now, "What about the other $20,000?". And you're right, haven't mentioned that yet..... but this is the most exciting part of the program. If you've been to any vacant homes lately, you'll notice that they aren't exactly move in ready. Most need to be painted, have flooring replaced, new cabinets installed and a lot of other cosmetic work. This is where the $20,000 incentive steps in after closing to provide funds to rehab the home to your specifications! $20,000 goes a long way, but if it isn't enough the program can be paired with an FHA 203(k) rehab loan. What's that? Just a fantastic program that allows buyers to borrow 96.5% of the purchase price plus 96.5% of the rehab money for any additional expenses over $20,000. Buyers will have the opportunity to buy like new home for only 3.5% down payment. What's better than that? What if the down payment was only 1%? Yes, less than 1 month rent and 1 month security deposit! Why rent? Inspire Realty Partners and First Centennial Mortgage teams are experts at crafting real estate transactions where the buyer only needs 1% of their own money.
Let me break it down a little more.... Let's say a beat up, vacant, foreclosed home is listed for $100,000. Once repaired it might be worth $150,000. An investor might be interested in buying this home only if the repairs were less than $15,000 because they need to keep a $20,000 or larger profit in the deal. You, the owner occupant, don't need $20,000 in instant equity to buy the home and you're going to save on transaction costs. Investors won't be able to compete with you! You can buy the home for $95,000* and get $20,000 in repairs at no extra cost. You can close for $950! You just paid less than $1,000 to buy a home worth $150,000. You have over $50,000 in equity and like brand new home to live in. In 5 years, that home could be worth $190,000 (assuming roughly 5% rise in prices per year). Your remaining mortgage would be about $90,000 and you have $100,000 in equity. What better way is there to build wealth than in real estate and with this buyer incentive program?
*Example is for illustrative purposes only. No promises or guarantees are made. There may be other expenses or factors involved in the down payment. Each transaction is unique. Image courtesy of stockimages at FreeDigitalPhotos.net