Don’t Let a Big Down Payment Stop You From Owning Your Dream Home

Do you want to buy a house, but aren’t sure you can cover the down payment? Let’s talk about
some down-payment assistance programs that may be able to help.

Down payment assistance can be the difference between saying “yes”
or “no” to a first home. If you are interested in buying a home but don’t
have cash on hand for a down payment, or if you have a son, daughter
or any other friend or family member who would like to purchase a home
but doesn’t have cash for a down payment in the state of Illinois, there
are several government programs that can assist you in securing a
down payment for your new dream home.

The First Home Illinois Program This program offers a forgivable
loan of $7,500 to buyers who will live in their new home for at least 5
years. This program will discontinue in December 2018, so to take
advantage of this down-payment assistance opportunity, your home
loan must be originated by December 15, 2018.

Even though this program will be discontinued for much of Illinois past 
2018, there are other down-payment assistance programs that will be 
available moving forward into 2019 and beyond:

- A forgivable loan of up to $6,000, with the amount based on the total
price of the home, forgivable after 5 years. 

- A $7,500 deferred program. This loan is repaid through a second
mortgage the buyer doesn’t make payments on, but is reimbursed when 
you sell your home.

- A $10,000 no-interest loan repaid through a monthly payment of
$83 for 120 months.

If you’d like to find out more about these programs, check out this flier!

If you have anything other questions regarding down-payment 
assistance in the purchase of your new home, please feel free to
give me a call or send me an email today. I’d love to hear from you.

What Does Reduced Home Affordability Mean for You?

Home affordability is shrinking fast. Here’s what you should do to get ahead of the curve.

Home affordability is shrinking rapidly, according to research by Arch Mortgage Insurance. In the first quarter, affordability (defined as the size of the monthly mortgage payment needed to buy a home) dropped by 5%. This was mainly due to the increase in mortgage rates. As a consequence, more people are now stretched and taking on greater debt relative to their income. Other buyers are being pushed out of the market altogether. 

That's not all. Affordability is expected to drop an additional 15% to 20% by the end of the year. That's because home prices continue to rise, and the Federal Reserve is expected to ratchet up its reference interest rate, which often leads mortgage rates, three more times this year.

What does this mean for you?

If you're looking to sell, you won't have a hard time finding a buyer. Even with decreasing affordability, demand for homes still far outstrips supply. That means that this spring and summer might see an additional rush on the real estate market. It also means that right now might be a very good time to list your home if you've been thinking about selling for a while.

There’s no need to panic if you’re a homebuyer.

On the other hand, if you are thinking of buying a home, you might think that this news spells doom for you. However, there's no need to panic. While affordability is dropping, it is still well above historic averages (just like current mortgage rates). In fact, Arch Mortgage Insurance estimates that homes are now 15% to 20% more affordable than they have been in the period from 1987 to 2004. When rates go up, it will affect what your monthly payments will be on a new home. From this perspective, it makes sense to move now in case you've been looking to buy before rates rise further. 

So what's the next step? If you’re thinking about buying or selling a home, give us a call. We’d be happy to answer any questions you may have. We look forward to hearing from you soon.

Buying a home can unlock a door to a great tax return

Welcome back and happy New Year! It’s tax time and nobody looks forward to that.  I have some exciting news, though. Did you know that if you itemize your taxes you are able to deduct up to $1 million of total mortgage interest?

You can also deduct $100,000 of equity mortgage interest. Make sure to check with your accountant or give me a call if you have any questions.

Also, if you know of anyone who is thinking of buying, be sure to send them my way!

The 3 Must-Haves in Order to Buy a Home

Thanks for joining me today. One question I get asked frequently is: What does it take to buy a home? Obviously, there are a lot of important requirements before you can step into  your dream home, but I've boiled it down to the three most important must-haves for buyers.

1)  Credit. You've got to have a credit history. You start a credit history when opening a credit card, purchasing an item with a loan, or attending higher education and taking out student loans. Whether that credit score is good or not depends on whether your payments have been timely. And a good credit score is needed and you need a credit score of at least 640.

2)  Two year job history. A lender wants to know that you have a steady income and verify how much you will be making in ratio to your mortgage payments.

3)  Money. Of course I'm stating the obvious, but you may not need as much as you think. With the FHA loan, you can put down as little as 3.5%. That is $3,500 for every $100,000 that you borrow.

If you have any questions about how to qualify for a home or what your credit score may be, please give me a call today and thanks for watching!

Housing Price Market Update with John Bloss

You’re probably sick of hearing about how great the market is and how you need to make your move now. Has anyone ever told you why you should make your move now? Interest rates and home prices are increasing, and with each increase, there is a decrease in your purchasing power.

Are you a first time homebuyer?

Are you a first time homebuyer?

Are you a first time homebuyer? Are you thinking of buying in the spring or summer? Now is the time to come and talk to us. We can help you with a strategy and make sure you’re approved. Find out more about how we can help you get ready to buy your first home!

4 Ways to Improve Your Credit

Welcome back! For the past few videos I’ve been telling you everything you CAN’T do, but now I have a list of different things you can do to improve your credit.

•    Join a credit program. It may have a slight cost, but these programs alert you when there are any unauthorized uses on your card. Stop any damage before it starts.

•    Make your payments on time. One missed car or mortgage payment can terminate the loan process immediately.

•    Use your credit normally. Continue to use your card and pay on time as normal, just don’t overcharge.

•    Keep in contact with loan originator. If you receive a collection letter or anything that you think may affect your credit, notify your lender immediately.

If you have any questions about how to improve your credit, give me a call. Thanks for watching!

More Credit Don'ts

Welcome back to my video bog! Last time I talked about things to avoid when you are applying for a mortgage. Well, I have a few more tips for you!

The first is do not go out and make new purchases. Just last week I had a couple that was all set for their loan. Then they cosigned for a relative’s car purchase. Because of that new $425 monthly payment, they were no longer approved for their loan. So, please do not go out and purchase a car, furniture or cosign for anyone!

Secondly, do not consolidate your credit cards. Some people think if they close their cards and consolidate to one payment their credit will be better. In reality, though, when you close a credit card, you lose all your credit history.

Thirdly, do not max out or overcharge your credit accounts. These two things can damage your credit by as much as 100 points. Plus, it can take months to untangle.

If you have any more questions about applying for a mortgage, please give me call! Thank you for watching!