Don’t Be Afraid of that Rehab!

By now, you’ve likely heard of the terrific homebuyer credits for both first time buyers and repeat buyers (up to $8,000), but have you heard about the FHA 203(k) loan program?

The 203(k) loan program offers borrowers the resources to rehabilitate a home that may be in need of repair. This opens up the field to a wide range of properties in disrepair that would not have qualified for a loan in the past (one with no kitchen or heating system, for instance) because they would not have passed the appraisal process.

One single loan up to $410,000 is used to pay for the purchase of their primary residence and the cost of renovating the home. The cost of repairs must be at least $5,000 and cannot exceed $35,000.

Eligible Properties:

¨ Primary Residence

¨ Single family dwellings

¨ Condominium

¨ Townhouse

¨ 1-4 Unit Buildings

Allowable Repairs:

¨ Update or remodel a kitchen

¨ Repair/replacement of decks, patios and porches

¨ Elimination of health/safety hazards

¨ Plumbing, heating, air conditioning, and electrical upgrades

¨ Roofing, gutters and downspouts

¨ Flooring, tiling and carpeting

¨ Energy conservation improvements, including windows and doors

¨ Exterior and interior painting

¨ Access for the disabled

Needless to say, this presents an amazing investment opportunity, since many of the great real estate deals out there are on homes that need a little TLC. Perhaps not the ideal for every buyer, but for many, the chance of a lifetime

Of course, like anything, there is some fine print that goes along with this program, but as I am not a loan officer, I won’t even begin to explain it. For more information contact the Phalen Mortgage Group at Wintrust Mortgage, 630-390-1206, or pmg@wintrustmortgage.com.

taxcredit_expanded.pdf

Don’t Be Afraid of that Rehab!

By now, you’ve likely heard of the terrific homebuyer credits for both first time buyers and repeat buyers (up to $8,000), but have you heard about the FHA 203(k) loan program?

The 203(k) loan program offers borrowers the resources to rehabilitate a home that may be in need of repair.  This opens up the field to a wide range of properties in disrepair that would not have qualified for a loan in the past (one with no kitchen or heating system, for instance) because they would not have passed the appraisal process. 

One single loan up to $410,000 is used to pay for the purchase of their primary residence and the cost of renovating the home. The cost of repairs must be at least $5,000 and cannot exceed $35,000.

Eligible Properties:

• Primary Residence
• Single family dwellings
• Condominium
• Townhouse
• 1-4 Unit Buildings

 

Allowable Repairs:

• Update or remodel a kitchen
• Repair/replacement of decks, patios and porches
• Elimination of health/safety hazards
• Plumbing, heating, air conditioning, and electrical upgrades
• Roofing, gutters and downspouts
• Flooring, tiling and carpeting
• Energy conservation improvements, including windows and doors
• Exterior and interior painting
• Access for the disabled

 

Needless to say, this presents an amazing investment opportunity, since many of the great real estate deals out there are on homes that need a little TLC.  Perhaps not the ideal for every buyer, but for many, the chance of a lifetime

Of course, like anything, there is some fine print that goes along with this program, but as I am not a loan officer, I won’t even begin to explain it. For more information contact the Phalen Mortgage Group at Wintrust Mortgage, 630-390-1206, or pmg@wintrustmortgage.com.

There’s Still Time!

Less than 90 days to go and counting.

Whether you’re a first time homebuyer or you already own, there’s never been a better time to buy! The buyer’s credits for home buyers of $8,000 and $6,500 expire at midnight on April 30, 2010. You must be in a contract to purchase by then and the home you are buying has to close by June 30, 2010 to qualify. Read More! Don’t delay…get out there today and find your new home.Take advantage of your credit!

Help for Haiti

What’s happening in Haiti is so sad and hard to watch. One has to wonder how those people will ever recover from this tragedy, or if, in fact, they will. How do you rebuild an island that has been so devestated?

There are all types of ways to donate cash or clothes. But if you don’t have the financial abiltity to donate, there are still ways to contribute. The Red Cross is expecting a shortage in blood, so giving blood is a great way to pitch in. If nothing else, 15 minutes of Haiti coverage on TV should help us all put our bad days into perspective.

After looking into the earthquake and how devestating it has been I found a really interesting website (http://earthquake.usgs.gov/) on earthquakes and how many there have been worldwide especially here in the states in the last month. Check out the website  and take time to donate either your money or your blood.

Show Me the (Stimulus) Money!

Ever wondered where the stimulus money is being spent? Go to the goverment’s website, www.recovery.gov to find out. You can find out where the money has been spent by state, job sector, and even search for tax credits that might affect you.

Chocolate Snowflake Cookies

Feeling in the need of a little Christmas spirit?  

Bake up a quick batch of cookies. These are not only delicious, but make enough to share!

                                                                                                                                         

1 1/4 Cups butter at room temperature (2 1/2 sticks)

2 Cups sugar

2 Large eggs

3/4 Cup Hershey’s Special Dark Cocoa powder

2 Cups all-purpose flour

2 Tsp. vanilla extract

1 Tsp. baking soda

1/2 Tsp. salt

Coarse sugar

Cream butter and sugar together in a large bowl until well combined. Add vanilla and eggs and mix well. Mix in cocoa, salt, and  baking soda. Mix in flour just until combined.

Chill dough for 15 minutes. Turn out onto parchment paper and roll into 1 inch logs. Refrigerate for 1 hour or until firm.

Preheat oven to 350 degrees. Pour coarse sugar into a shallow dish. Cut dough into round slices, between 1/4 and 1/2 inch in width. Press each cookie into the sugar and place on parchment-lined cookie sheet sugar side up.  Bake for 15-18 minutes, or until slightly firm to the touch. Cool on a wire rack.

Makes about 5-6 dozen cookies.

Get the New Home You’ve Always Wanted

A new home for Christmas! Okay, maybe New Year’s is better for you. Here are the 3 reasons why you should be trying to buy a house this month:

1. Interest rates are at 4.71%…the lowest they have been since 1971.
2. Home prices are at their lowest since the early 2000’s.
3. The Buyer’s income tax credit of $8,000 for first time buyers and $6,500 for second time buyers.

 

Now, of course you need to be able to qualify to buy a home, but if you’re thinking about buying there has never been a better time. If you’re one of the people thinking you’ll wait until spring, I have three more things for your consideration:

• The Fed has announced that it will stop buying mortgage backed securities in March, which some think will cause the rate to go over 6%.
•  You must buy by April 30th and close by June 30, 2010 to get the credit. If you’re buying a foreclosure or short sale, the time needed to get to closing is considerably longer. 
• Early in 2010, possibly as early as January, FHA is changing its requirements, and not for the benefit of buyers. Right now you can buy with only 3.5% down; that is changing to 5% of your own funds or a gift. FHA will also be requiring a higher the credit score.

 If home ownership has always been a dream of yours, don’t wait…your time has come!

Recycling Made Easy

Earth911.com is a great website that lets you know where you can go to recycle. Whether it be batteries, CFL light bulbs, paint cans… whatever it is. It’s simple and easy to use, very informative, and a great way to teach your kids and yourself what can be recycled and where. You might be surprised what’s in your garbage that you could be recycling.

Give Your Kitchen the Night Off!

Earlier this week, I attended an economic conference and one of the speakers noted that many Americans today are not spending as much as they used to. Now, I’m not talking about people who are out of work or in fear of a layoff, but people who are financially secure and can afford to spend. Many are reacting to all the media coverage of our ailing economy, not realizing that their very actions are contributing to it. The speaker asserted that if people went out to eat just one more time a week than they currently do, our economy could be turned around in a matter of months. Simply put, we must spend money to strengthen our economy. It makes perfect sense; from the restaurant owner to the suppliers to the person serving your food, everyone benefits.

So what is a concerned citizen to do? Take the night off from cooking once in a while! You know you deserve it, and now you can do so knowing that you’re helping to strengthen our economy. It doesn’t have to be at Chez Expensive, and most restaurants have items that will conform to even the healthiest of diets. So what are you waiting for…tell the kids you’re going out for dinner tonight!

Is Your Home Being Over-taxed?

The two things in life you cannot avoid…death and taxes!

 Those dreaded assessment letters have been in the mail this week and in the local papers for York Township. Some have actually gone up, some down, but most of them seem to have held. So that seems okay, right? Not really. Your value has not stayed the same and by no means has it gone up; it has gone down. The way the assessor figures your total value is based on the last 3 years of sales. So they are looking at 2008,2007,2006, and our homes lost value in 2007 and 2008 and continued to depreciate in 2009. (Take heart, it does appear that prices have bottomed out, and maybe by 2010 we’ll start to see a true leveling off.)

 Take the amount of the assessed value and multiply that by 3, that is the value your home is being taxed on. If you feel that amount seems high, start by talking to your realtor (Sue Pearce) and find out what a fair market price would be for your home. Once you’ve determined that you’re being overtaxed, get the appeal form online at http://www.yorkassessor.com/, or if not York township, contact your own local assessor’s office.

 There is some footwork and research needed to win your appeal, but it can be done and I am here to help if needed. The deadline for filing your appeal in York Township is December 21, 2009; if you miss that you have to wait until next year. There is no guarantee you will win your appeal, but if you’re being over assessed and it can be proven, you can get your taxes lowered.