FHA: Down Payment Calculation and Loan Limits

In July 2008, Congress passed the Housing and Economic Recovery Act, a broad-based housing legislation, heralded as the most sweeping housing reform since the “New Deal”. The Act included changes in conforming and FHA loan limits and a comprehensive modernization plan for FHA.

Because of the changes introduced through the Housing and Economic Recovery Act of 2008, when originating an FHA loan, there will be a change in the down-payment requirement effective 1/1/2009.  

  All Case numbers assiged before 1/1/2009 will fall under the current guidelines for down-payment (97.15% in most states).  If the FHA case number is assiged on 1/1/2009 or later, the purchase loan will require a mandatory 3.50% down-payment amount.

Loan Limits are based on Funding date so all FHA loans funding on 1/1/2009 or later are subject to the new FHA loan limits.

KJ Premier Real estate Services Prides itself on keeping up with the most current information when it comes to buying and selling Realestate.  We have alligned ourselves with a few of the top Mortgage Brokers in the Chicagoland area that can help you through the buying process.  Please feel free to contact us at kjpremier@atproperties.com so that we can put you in contact with a mortgage broker that fits your needs.

Helping you sell!

Since the Labor day holiday has come and gone, we’ve had a flurry of clients decide to put their homes on the market as we make the mad dash before the holidays.  We just wanted to share with you a few quick tips on how to prepare your home to sell the fastest, and for top dollar.

1.  No matter what the season, consider it spring and do your “spring cleaning.”

2.  Brighten things with fresh paint.  Light, off-white, or biege walls make a room look bigger and brighter.

3.  Clean all of your windows and mirrors so they sparkle.

4.  Keep kitchen countertops clean and free of clutter.  Organize kitchen cabinets and cupboards.

5.  Polish the tub, toliet, and bathroom sink.

6.  Check all closets to be sure clothes are neatly arranged.  Keep as few items as possible stored in overhead shelves and on floors.

7.  Go through the basement, attic, garage, and/or your storage unit.  Organize them so they appear as spacious, neat and clean as possible.  It’s a great time to have a garage sale.

While these are just a few suggestions, each and every home is unique.  If you are looking for low cost ways to freshen and prepare your home, this is just a few suggestions.  Some items, can be a bit more costly such as replacing countertops, or bathroom tile, however the return can be also be great.   Please contact us today for a customized anaylisis for preparing your home for a quick and profitable sale at kjpremier@atproperties.com.

Getting the Biggest Bang for your Buck when Remodeling

I have people ask me this question all the time, so I’ve decided to write a post, so that I can now just refer people here when asked.  I am a huge believer in do-it-yourself projects, or if you have zero handyman in you (or direct access to one), then hire someone to do it.  The thing is when people are looking to buy, a home that looks like a project or that needs a decent amount of rehab scares people away.  With that being said, you can usually find these properties at a little bit better price compared to ones that are already move in, picture perfect.  Plus, the upside of having done the work yourself is that you stand to make a nice little profit in the end when you go to sell.  But, how do you know what to tackle first?  I will give you a quick outline to consider before you start hammering away at your next home makeover.

Now, depending on what type of home you have and what area of the country you live, these suggestions will vary.  However, in downtown Chicago, in a condo high rise, most people will know that kitchens and baths sell a unit.  And surprisingly enough, on a nation as a whole, a kitchen remodel is also one of the top things to tackle.  Recovering about 83% value when reselling, a custom, modern kitchen should be high on your priority list.  If you’re in Chicago and reading this, move then on to your bathroom, which should be done in neutral, waterproof stone, that has a timeless, clean look to it.

If you own a home, or something other than a condo, or attached living, most of the other biggest bang for your buck comes when considering the outside of your home.  An upscale siding replacement, the addition or upgrade of an outdoor deck, and a window replacement were all 3 huge return winners when reselling.

On the flip side the bottom three projects which give remodelers the least return on dollars spent was, an office remodel, installing a back-up power generator, and adding a mid-size sun room.  Again, one must consider the market, other homes in the area, and what is commonplace in your region, city, and neighborhood.

For additional tips and more info on do-it-yourself projects, and remodeling, feel free to contact us at: kjpremier@atproperties.com.