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:
Dennis Hardy
Toll Free: (877) 240-5810 x104
dennis.hardy@madisonmortgageguys.com
www.madisonmortgageguys.com
Visit my blog at http://www.madisonmortgageguys.com/blogs_dennis_hardy/
Visit our home buyer credit announcement on our website for additional details:
http://www.madisonmortgageguys.com/announcements/8000_tax_credit/updates/index.htm
Illinois First time home buyer programs page:
http://www.madisonmortgageguys.com/first_time_home_buyer_wisconsin/index.htm
Illinois first time home buyer tax credit extended including Chicago
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.
Your Illinois mortgage banker:
Dennis Hardy
Toll Free: (877) 240-5810 x23
dennis.hardy@madisonmortgageguys.com
www.madisonmortgageguys.com
Visit my blog at http://www.madisonmortgageguys.com/blog/
Recent FHA blog posts:
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.
FHA Mortgage: 3.5% down payment
USDA Rural Housing: No Money Down
VA Mortgage: No Money Down
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.
Dennis Hardy
Toll Free: (877) 240-5810 x104
dennis.hardy@madisonmortgageguys.com
www.madisonmortgageguys.com
Visit my blog at http://www.madisonmortgageguys.com/blog/
First Time Home Buyer Information for Illinois and Wisconsin Residents
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
Reference: For a definition of the term "family member," see below
|
|
| 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
|
Ameristar Mortgage is your local Wisconsin and Illinois FHA mortgage broker:
Dennis Hardy
Toll Free: (877) 240-5810 x104
dennis.hardy@madisonmortgageguys.com
www.madisonmortgageguys.com
Visit my blog at http://www.madisonmortgageguys.com/blog/
Recent FHA blog posts:
http://www.madisonmortgageguys.com/blog/content/chicago-fha-mortgage-loans-chicago-fha-refinance/
http://www.madisonmortgageguys.com/blog/content/fha-95-cash-out-refinance-loans-are-going-away/
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 low or no money down programs:
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:
Dennis Hardy
Toll Free: (877) 240-5810 x104
dennis.hardy@madisonmortgageguys.com
http://www.MadisonMortgageguys.com
Visit my blog at http://www.madisonmortgageguys.com/blog/
View my other no down payment blog posts:
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
We offer cash out refinance, jumbo loans, interest only, no money down, first time home buyer, 100%, FHA loans, VA loans and rural housing loans. www.madisonmortgageguys.com
We are committed to providing our customers with exceptional customer service. By providing our clients with sound, expert advice as to the many different loan programs and options available, we hope to take some of the mystery out of mortgage financing.
For most people, a mortgage loan is the largest financial transaction they will ever make. Our expert mortgage consultants are able to walk you through the mortgage process and put your mind at ease during the application and approval process. We're with you every step of the way including the closing.
Unlike many smaller mortgage brokers or even small banks and credit unions, we perform all of the mortgage functions in house rather than relying on an outside service provider. From our in house processing and underwriting departments to our in house closing department, we are handling every aspect of your loan file to ensure an accurate and timely closing.
We set up appointments according to your schedule, not ours. Our loan consultants are available to take appointments during the day, evenings, weekends and even in your home if that is most convenient for you. We believe that we earn your business. We continue this level of service to all of our internet applications as well.
We are also able provide our clients with an accurate closing cost statement at application time. This ensures that when you show up to closing, you won't be surprised by any hidden fees or charges that were not previously disclosed. And you'll find that we have some of the lowest closing costs in the industry to begin with. We fund our loans on time, and for purchase transactions we usually fund our loans early to ensure a smooth closing with all of the real estate agents involved.
Our company is locally owned and operated out of Waukesha, WI . We currently lend in Wisconsin, Illinois and Florida. We pride ourselves on only hiring the very best and brightest in the industry.
We simply want to provide our clients with some of the most competitive mortgage financing available. We pride ourselves on having some of the lowest interest rates and fees around! The mortgage process can be very confusing at times, especially when trying to compare quotes from different lenders. We believe in treating our clients with the highest level of professionalism and personalized service. Our high level of service has continued to earn us the trust and respect of our past clients, friends and local realtors. We want you to be more than satisfied with your mortgage lending experience with us.
We currently lend in the states of Wisconsin, Illinois and Florida.
Illinois Purchase and Refinance Programs:
First Time Home Buyer
Refinance
No Money Down (100% Financing)
Cash Out Refinance
FHA Mortgage Loans
Debt Consolidation Loans
VA Mortgage Loans
Interest Only Loans
Jumbo Mortgage Loans
80/10 Combo Loans
Freddie Mac Home Possible
FHA Streamline Refinance
Government Mortgage Loans
VA Streamline Refinance
Rural Housing
Less Than Perfect Credit
Jumbo VA Loans
Lender Paid Mortgage Insurance
My Community Mortgage
Non Owner Occupied/Investment
Contact Us
Dennis Hardy
Toll Free: 877-240-5810 x104
dennis.hardy@madisonmortgageguys.com
www.madisonmortgageguys.com
Visit my blog at http://www.madisonmortgageguys.com/blog/
Illinois Communities: Chicago Glenview Springfield Normal Aurora Buffalo Grove Waukegan Evanston Rockford Wheaton Naperville Joliet Cicero Peoria Elgin Schaumburg Arlington Heights Northbrook Mount Prospect
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved
