203k program~Rehab Loans

Looking to Buy a ‘Fixer-Upper’? The 203k Program Can Help Make It Happen Today’s real estate market presents a lot of opportunity for interested home buyers—with the growing supply of foreclosure properties and short sales, there are certainly some great deals to be had. The problem in buying a “distressed” property, however, is that these homes are often damaged due to lack of maintenance or prolonged vacancy. So while the price tag might be right, the investment necessary to make the home livable might just push buyers well beyond their budgets. I have access to the latest information on mortgage and financing options. One particular option that is providing hope for many of today’s home buyers is HUD’s FHA 203k program, a loan that enables buyers to not only secure a mortgage, but receive the funds necessary to improve the home as well. Here are five facts about the 203k program to help you determine if it might be the right fit for you:

1. The FHA Section 203k program was originally introduced by HUD in 1978 as a program to rehabilitate and repair single-family homes. The 203k is a single mortgage loan that provides funds to purchase a home and make repairs and improvements. A simpler version, the Streamline 203k, was introduced in 2005. This version offers less documentation and lower loan fees for renovations that don’t exceed $35,000.

2. In today’s market, conventional financing, which often requires 20% – 25% down on a home and a perfect credit score, is often hard to come by. However, with less-than-perfect credit and as little as 3.5% down, you can get an FHA loan, such as the 203k.

3. The 203k approval process is a little more complicated than a conventional loan. For example, you’re required to secure renovation costs from an established, licensed contractor and deliver a package of the proper paperwork to the lender to secure FHA approval. Make sure you work with an agent—like a member of Top 5—who is well-versed in the 203k program, or who can connect you with a lender that is.

4. The 203k loan is not just for foreclosure or distressed properties. More than 80% of the homes in America were built before 1990—that’s over 100 million homes that are 20 years old or older—and almost every one is in need of some amount of repair and updating. The 203k loan, therefore, offers advantages for almost any home purchase.

5. The 203k loan is not just for home purchases but can be used to finance a home improvement, as well! For complete details on the HUD 203k program, you can visit www.fhainfo.com/fha203k.htm. Please feel free to e-mail us, too, since this information can be hard to digest and confusing. Be sure to pass this e-mail on to any friends and family who might also be able to take advantage of a 203k loan.

Looking to buy a foreclosure or short sale?  Don’t do it alone.  Buying in this market can be daunting.  Let us help.

kjpremier@atproperties.com

Pottery Barn Beauty in W. Lakeview!

Located just off the Southport corridor, this gorgeous 2 bed/2 bath is centrally located to so many of Chicago’s great features!  Nestled between Lakeview and Roscoe Village, at 3432 N. Ashland, it is just a few quick steps off the CTA

Coobah's outdoor dining

Brown line or a hop on the Ashland bus.  Or, if you prefer to drive, it does have a garage spot included in the price, and a second one available through the end of the year!

This fabulous unit, built in 2002 by DeStefano Partners, has fabulous space, and lovely designer details throughout.  With carmel 42 in. cabinets, top of the line stainless steel appliances, wonderful lighting, and a spaceous granite island for entertaining, this kitchen is sure to delight!  The open living room, dining room, and kitchen lends wonderful space, (more so than the average 2 bed/2 bath!) and is ideal for entertaining.  The luxurious spa-like baths, and generous room size complete the package in the must see walk up condo in one of the City’s most happening spots!

You can buzz next door for a workout at XSport Fitness which is open 24 hours, or grab dinner on your way home at Whole Foods.  Or if you prefer a more trendy day out and about, hop on over to one of my personal favorites, M Boutique for some accessory shopping, have lunch at the Southport Grocery (but make sure to have a cupcake!), followed by happy hour at Schoolyard, and a little Latin Flare for dinner at Coobah!

Please see our listing video here for more shots of this gorgeous condo:

 

http://tours5.vht.com/Viewer/VHTTour.aspx?ListingID=1206508&Style=IDX

Call or email us today with questions or to view this beautiful property.  Kjpremier@atproperties.com

Experts Predict that Low Mortgage Rates Won’t Last Forever!

We’ve been hearing about historic low mortgage rates for months now, but they could be going away if buyers don’t act quickly enough. CBS 2′s Vince Gerasole explains why some analysts say those sitting on the fence may want to hurry.

Those low rates have encouraged many buyers who were hesitating to jump into the housing market, especially first time buyers. But just as more are deciding they might take the plunge, rates are heading back up. Market watchers say if buyers wait too much longer, it may cost them.

At 25, Alex Filin is buying his first place and he’s hunting down the perfect condo.

“It’s a little headache, but the adrenaline rush, the excitement is getting me going,” Filin said.

An $8,000 tax credit for first time buyers, sellers lowering their asking prices and historically low interest rates are pushing people like Filin into the mark in numbers real estate agent Paul Fortman with @properties hasn’t seen in two years.

“Just within the last four weeks I have accepted seven contracts, and I have five closings in the month of June,” Fortman said.

But buyers like Filin who have decided to jump into the market may want to act fast. Mortgage interest rates in the past week have jumped at least half a percentage point, from an almost unheard of low of 4.75 percent to a still impressive 5.25 percent. But critics caution they may not drop again.

Analysts blame rising government debts from the bailout of the auto industry, for example, that push up all sorts of long term loans including mortgages that have looked so appealing in recent months.

Keep in mind with first time home buyers every dollar in mortgage payment can make a difference in whether they can afford the house or not. For example, for a house selling for roughly $250,000, with 20 percent down, the difference between last week’s interest rate and this week’s is roughly $60 more each month in mortgage payment.

Don’t wait for your opportunity to own a home to pass you by….email us at kjpremier@atproperties.com today to find your dream home in either the suburbs or the city.

New Fingerprinting Law in Cook Co. in effect as of June 1, 2009

In an attempt to fight mortgage fraud, all purchasers of real property in Cook county will now be required to give a fingerprint, to be kept on file to complete the transaction.

Public Act 095-0988 amends the Illinois Notary Public Act by describing the manner in which a notary must sign each certificate at the time of notarization.The law requires that a paper or electronic form must be completed and retained, for a period of seven years, for each notarial act relating to real property in Cook County.

As part of the process, the new law will require the notary to have the individual to whom the property is being conveyed, as well as an agent acting on behalf of a principal under a duly executed power of attorney, to place his/her thumbprint on the transaction documents.

This is a currently a pilot program, and the new law is set to be in act July 1, 2013.  If you have questions about the Real Estate process or need assistance with buying or selling in this ever changing market.  Please contact us today at kjpremier@atproperties.com.

Upward Movement in the Chicagoland Housing Market

Kelly and I have never been so excited to have to clean our cars out to make room for clients.  We are happy to report that we have seen a nice swirl of activity in both the city and the western suburbs.  Clients are not only out looking but, they are snatching up the great deals that are out there.  From our experience the good foreclosures are selling in days and many times they are selling for more than the list price because of multiple bid situations.  This is a sign that the bottom of the market is stirring and this in turn will cause an upward ripple effect in the housing market.

 

The Chicago Tribune reported that March sales of previously owned single-family homes and condominiums in Illinois posted their second consecutive month-over-month gain, and for the first time since June, the statewide median price for a home rose from the prior month.  Suburban counties seeing among the largest month-over-month sales increases wee Lake County (65%), Kendall County (51%), and Cook County (38%).

 

 These recent statistics and our own experiences in this current market give us confidence that the housing market is headed in the right direction.  Don’t wait until the prices rise to buy your dream home or next investment.  Contact KJ Premier today at kjpremier@atproperties.com.

Mortgage Rates/Update

30 Yr Fixed Conforming:     5.000%     APR  5.089%

5 Yr ARM Conforming:       4.000%     APR  4.070% 

30 Yr Fixed Jumbo:          6.375%     APR  6.445% 

5 Yr ARM Jumbo:             5.625%     APR  5.695%

  

Prime Rate is at 3.250%

 

Mortgage News

Mortgage markets faced a broad sell-off last week, sparked by the Federal Reserve and consumer sentiment. 

 

This caused mortgage rates to spike from Wednesday to Friday and it caused the “lowest rates of all-time” to seem like an opportunity lost.

 

It’s the first time in 4 weeks that mortgage rates rose overall.

 

Last week was a strange week, to say the least.  Aside from the large docket of economic data, there was also:

• A Federal Reserve Meeting
• 160 of the S&P 500 firms reporting earnings
• A global public health emergency

It all combined to make for a volatile week in mortgages and the biggest losers were the people that hadn’t yet locked a mortgage rates.  Based on the current market, each quarter-percent that mortgage rates rose added $32 per month per $100,00 borrowed.

 

This week, the market should be similarly jumpy. 

 

1. If the outbreak’s intensity grows, look for Safe Haven to lower rates much like it did last Monday.

 

Also, be aware and listen for Stress Test rumors.

 

Thursday, the government is expected to release its bank Stress Test results.  However, history shows that markets often make large movements before news is ever official — mostly on rumors. As a result, expect mortgage markets to carve out wide ranges on Tuesday and Wednesday in advance of the reports, making it very hard to “time” low mortgage rates.

 

And lastly, Friday brings us April’s employment data.  There’s nothing the report can show us that we don’t already know so the biggest risk here is that employment is not as bad as we all expect it to be. 

 

If that’s the case, stock markets will rally and mortgage rates will rise.

 

Like always, mortgage markets can change in an instant — especially when there’s outside influences on “normal” trading like we’re seeing with Swine Flu and the Stress Test.  If you’re offered a rate and it fits your budget, consider locking right away.  It may not last long.

If you have further questions regarding interest rates or finding what’s right for you and your housing needs, please contact us at kjpremier@atproperties.com.

*Information provided by Guaranteed Rate.

Mary Anne Simmons voted to RisMedia Top 5

A wonderful and experienced broker in Lexington, Ky as well as 5 other states, Mary Anne Simmons, whom we partner and work with as part of our Team has been voted by RisMedia, to their prestigous Top 5 in Real Estate.

Norwalk, CT- Reaching the pinnacle of her profession nationally, MaryAnne Simmons, of Premier Real Estate & Home Services, was accepted as a Member of the Top 5 in Real Estate Network®, the most prestigious of all industry achievements. 

More than just a sales-driven recognition, the Top 5 in Real Estate Network® meets a need that heretofore has never been addressed – helping consumers identify the most professional real estate agents in North America.  To qualify, each member must first meet a stringent set of criteria, based upon performance, as well as educational and professional skills and service to the consumer.  

Members of the Network are carefully selected and managed by RISMedia, which has provided the real estate industry with objective, unbiased news for nearly 30 years. As a Member of the Top 5 Network, Simmons is among the first real estate agents to be accepted into this elite organization.  

Allan Dalton, the President of RISMedia’s Top 5 Network congratulated Simmons for earning this top status within the industry. “MaryAnne has reached the very highest level of North America’s residential real estate industry. Not only are her professional accomplishments extraordinary, she has long been a true champion for home buyers and sellers in her area.  It is a pleasure to welcome MaryAnne into this elite group of industry leaders.”   

According to John Featherston, Chairman of RISMedia, the significance of Top 5 in Real Estate is that consumers deserve full transparency regarding all matters related to the real estate transaction, which often begins with the need to select a highly competent, experienced and results-oriented real estate professional. Top 5 in Real Estate has been established to both empower consumers with leading real estate content through Top 5 members, as well as to ensure that consumers are made fully aware that there is a material difference between average and exceptional real estate professionals.

MaryAnne Simmons, a 26-year real estate professional, is a licensed broker in six states (KY, FL, SC, NC, TN, AL) presently, and is the owner/broker/president of Premier Real Estate & Home Services. Simmons is a Guild Member of The Luxury Home Marketing Institute, a Resort Second Home Property Specialist (RSPS), a Certified International Property Specialist (CIPS), a Certified Residential Specialist (CRS), an Accredited Buyers Representative (ABR), a Certified Home Marketing Specialist (CHMS), and a Consumer-Certified Real Estate Consultant (C-CREC). What sets her company apart is the Home Services Division of her brokerage which includes:  a staging/merchandising division with 3 sets of furniture (Premier Designing Details), a Concierge Service (www.Maximize), a Commercial/Investment Division with a Broker/CPA as a part of her Team, an International Sales and Marketing Division, a Second Home Division (she is a member of 52 MLS services throughout many states), an Auction Division, a New Construction/Development Division, a Property Management & Rental Division (with local rentals and vacation rentals), as well as the Residential and Luxury Residential Divisions.  What’s more, she also has her own seller videos/tours/stories website and a website translated into 13 languages with properties for sale in six states as well as Paris, France’s MLS listings for sale. For more information, call 859-296-4663 or visit www.maryannesimmons.com.
yourmoments.com

For more information on RISMedia’s Top 5 in Real Estate Network®, please visit www.top5inrealestate.com or contact Member Services at 203-853-2167 ext. 139. 

RISMedia’s Top 5 in Real Estate Network^® is a membership network of leading real estate professionals providing leading real estate information to consumers. To qualify for membership in the Top 5 in Real Estate Network, agents must meet specific criteria in five key categories: experience; results; education; information technology; and commitment to community. RISMedia, the leader in real estate information systems, has been providing the industry with news, trends and business development strategies for nearly 30 years through its flagship publication, Real Estate magazine, its leading website, RISMedia.com, and its renowned networking and educational events.

Department of Treasury Releases new Details on “Making Your Home Affordable”

Among the details released, this plan will allow home owners the ability to either apply for a loan modification due to economic hardships and a resulting decrease in salary or if you have experienced a rate adjustment which is causing your payment to be more than you can afford.  The second point is the ability to reapply for an FHA refinance when you’re home may not have previously had enough value to support a traditional re-fi.  The one point that must be taken into consideration here though, is that you must be current on your monthly payments.  Click here to see the press release in its entirety. 

The dept. is also offering a website where you can check your eligibility to see if you too can qualify for one of the loan assistance/modification programs.  These new programs are aiming to offer assistance to 7-9 million more homeowners, allowing more troubled Americans to stay in their homes, thus helping to deplete some of the surplus of housing inventory in much of the United States.  This will give another shot in the arm to the housing inventory as we go full steam into the Spring market.  To see if you qualify for one of these programs, click here.

For more questions on how to make your home more affordable or with help in finding a new one, contact us today at kjpremier@atproperties.com.

Forbes Report of Most Liveable Cities

Does your city make the list?  Cities were determined based on the following criteria:

To form our list, we looked at quality of life measures in the nation’s largest continental U.S. metropolitan statistical areas–geographic entities defined by the U.S. Office of Management and Budget for use by federal agencies in collecting, tabulating and publishing federal statistics. We eliminated areas with populations smaller than 500,000 and assigned points to the remaining metro regions across five data sets: five-year income growth per household and cost of living from Moody’s Economy.com; crime data and leisure index from Sperling’s Best Places; and annual unemployment statistics from the Bureau of Labor Statistics.

15. Lounge with the Clinton’s–Little Rock, Arkansas.

14.  Peabody, Massachusettes

13.  There’s more than just cheese in–Madison, Wisconsin

Madison, WI

12.  Harrisburg-Pennsylvania

11.  If you’re in to the outdoors, then you’ll want to check out–Denver, Colorado

10.  Pittsburgh, Pennsylvania

9.  Just a short drive from Bean Town–Worchester, Massachusettes

8.  Baltimore, Maryland

7.  Where the intellects abound-Cambridge, Massachusettes

6.  Oklahoma City, Oklahoma

Cambridge, MA

5.  Tulsa, Oklahoma

4.  On the water’s edge–Stamford, Connecticut

3.  Des Moines, Iowa–Go Hawkeyes!

2.   Bethesda, Maryland

1.  Laid back living in–Portland, Maine

Several points considered in this were the cities’ cultural draw, affordability of living, income growth, low crime stats, and low unemployment rates.  To read more about these cities, feel free to check out the full story here.

To find out more on the cities near you that you should be investing in, contact us today at kjpremier@atproperties.com.

If You Can Buy a Home…NOW is the Time to Buy!

We see so many potential home buyers nervous to buy because of all that the market has seen and lost in the past two years.  BUT, with that being said, if you are thinking of buying….THIS IS THE TIME TO BUY!   Last Wednesday, the Fed bought over $300 billion in US Treasuries and over $750 billion in mortgage backed securities – this should insure that mortgage rates remain low for an extended period.   This move by the Federal Reserve has created the greatest buying opportunity for the housing market since the Great Depression – most likely the best opportunity we will see in our lifetimes!  The Fed is inflating their way out of this big mess.  Experts are saying that with real estate prices depressed and interest rates low, mortgage rates should come down to 4%, thus creating that double bonus, LOW PRICES & LOW RATES!  Just think about the affordability index too at these low rates – how much more house can you buy with at 4% then 5.25%?  Answer: The interest at 5.25% on a $500,000 loan will support a $656,250 mortgage loan at 4%.  At this rate buyers can either afford more or lock into an interest rate that they will never see again. 

 

Please keep in mind that good things do not last forever. Eventually,this ‘monetization’ will cause interest rates to rise and most probably for the US to enter a period of inflation. Interest rates will rise as things get more expensive. You as a potential buyer have a great window to get a great deal – KJ Premier urges you not to miss out! 

 

BENEFITS OF BUYING NOW:

• First time home buyers can capitalize on $8000.00 tax credit
• Record low housing prices
• Low, low, low mortgage rates

 

Please keep in mind that our ability to help you is dependent upon understanding your particular needs and wants with regard to finding a home.  So, when you are ready to explore your real estate needs further, KJ Premier will be happy to assist you.  Contact Wendy Johnson and Kelly Karls at kjpremier@atproperties.com today!