Consumer Real Estate Center For Bloomington/Normal Residents & Transferees

 

 

Contact Us 309-664-3536 405 N. Hershey Rd., Suite 6 Bloomington, Il 61704

 

Financial Resources

Mortgage Calculator National City Mortgage Current Home Market Value Financing Information

First Time Home Buyer

Pre-qualification Letter:

Lender pre-qualification provides a ballpark estimate of how large a mortgage you can afford. While it doesn’t obligate the lender to approve your loan, it’s a way to help ensure that you will apply for a mortgage loan within your price range. If you meet with me to get pre-qualified for a loan, you will have a good idea of the maximum mortgage amount you can afford and will have focused your house search on properties within your price range.

FHA Programs

What is the purpose of this program?
To provide mortgage insurance for a person to purchase a principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD.

What are the eligibility requirements?

• The borrower must meet standard FHA credit qualifications.
• The borrower is eligible for approximately 97% financing. The borrower is able to finance closing costs and the up front mortgage insurance premium into the mortgage. The borrower will also be responsible for paying an annual premium.
• Eligible properties are one-to-four unit structures.
• The maximum mortgage amount for a single family unit is $160,950. Lesser limits may be applicable in certain areas.

Mortgage Credit Certificate Program:

This program gives a first-time homebuyer more home purchasing power by providing a significant federal tax credit, increasing after-tax income up to $2,000 a year for the life of the mortgage.

Requirements:

1. Borrower must be buying their first home, or must not have owned a residence in the past three years.
2. Household income must fall within the limits specified (100% of the HUD Median Income)
3. The mortgage loan must be a new loan and not a refinance
4. the home must be a single-family, detached residence, a townhouse or a condominium.

How the Program Works:
An illustration is perhaps the best way to convey how the MCC Program works. Let's assume a family earns $40,000 annually with no other standard tax deductions. They buy their first home and borrow $115,000 at an interest rate of 8.5% while qualifying for a Mortgage Credit Certificate. Below is the tax savings they will realize.

The Coalition Program

• Low Income Guidelines - Qualify up to $2,500 in down payment assistance
• Very Low Income Guidelines - Qualify up to $5,000 in down payment assistance
• Seller pays $50.00 at closing
• Buyer pays $100.00 at application
• Buyer does not have to complete any programs
• Must be a 2 year resident of McLean County
• Bank must be a member of the coalition
• If borrower is working with a Realtor the real estate firm must be a member of the coalition
• 5 Year Forgivable Loan
• City Inspections are required - The Realtor or Loan Officer must order the inspection
  Town of Normal Inspector - Al Brown
  City of Bloomington Inspector - Dave Martin
  Re-inspection can be required.

IHDA Program with Set Interest Rates - (Moderate Income Program)

• 30 Year Fixed Rate Mortgage
• 5% Down Payment Required - Must be own funds, cannot be a gift or a loan.
• Maybe able to grant funds - They have to review the program to see if they will allow the program assistance for the down payment or closing costs
• $1,000 Closing Cost Allowance through IHDA can be used to cover escrow account money after all closing costs are paid. (If seller is paying closing costs). Can't be used to cover odd days interest or Home Owners Insurance.
• Single Family Residence Only
• Income & Purchase Price Restrictions Apply
• Qualify at 28/36% ratios
• Buyer pays a loan application fee of $50.00

The USDA Rural Housing Service

Programs available to aid in the development of rural America. Rural Housing programs are divided into three categories: Community Facilities (CF), Single Family Housing (SFH), and Multi-Family Housing (MFH). These programs were formerly operated by the Rural Development Administration and the Farmers Home Administration.

The following is a summary of RHS programs:

Community Facilities Loans
Purpose: To construct, enlarge, extend, or otherwise improve community facilities providing essential services in rural areas and towns with a population of 50,000 or less. The funds are available to public entities such as municipalities, counties, special-purpose districts, Indian tribes, and corporations not operated for profit. RHS also guarantees community facility loans made by banks or other eligible lenders.

Home Ownership Loans
Purpose: To aid low-income and moderate-income rural residents to purchase, construct, repair, or relocate a dwelling and related facilities.

Home Improvement and Repair Loans and Grants
Purpose: To enable very-low-income rural homeowners to remove health and safety hazards in their homes and to make homes accessible for people with disabilities. Grants are available for people 62 years old and older who cannot afford to repay a loan.

Self-Help Housing Loans
Purpose: To assist groups of six to eight low-income families in helping each other build homes by providing materials, site, and the skilled labor they cannot furnish. The families must agree to work together until all homes are finished.

Rural Housing Site Loans
Purpose: To buy adequate building sites for development into a desirable community by private or public nonprofit organizations.

Farm Labor Housing Loans and Grants
Purpose: To enable farmers, public or private nonprofit organizations, and units of State and local governments to build, buy, or repair farm labor housing in either dormitory or multifamily apartment style.

Congregate Housing and Group Homes
Purpose: To provide living units for persons with low incomes and moderate incomes and for those age 62 or older.

Housing Preservation Grants
Purpose: To provide qualified public nonprofit organizations and public agencies with grant funds for effective programs to assist very low- and low-income homeowners repair and rehabilitate their homes in rural areas and to assist rental property owners and co-ops repair and rehabilitate their units if they agree to make such units available to low- and very low-income persons