Sheila M. Wilkinson-Sanders

Illinois loan for First Time Homebuyer Tax Credit

2009-08-14T15:05:00Z

I mentioned in a previous blog that FHA announced they would provide a method for 1^st time homebuyers to utilize the $8,000 Federal tax credit

at closing instead of waiting until the 2009 Income Tax Return is filed. The Illinois HOME START Loan Program is the answer to the

Illinois 1^st time homebuyer who wants to take advantage of the Federal Tax Credit at closing on their new home.

As you probably know, The American Recovery and Reinvestment Act (ARRA) of 2009 provides eligible first time homebuyers with a one-time tax credit

of up to $8,000 that will enable them to save on their federal tax bill.

Through the HOME START Tax Credit Advance Loan, first time home buyers can utilize a 2^nd short term loan for down payment assistance at closing.

The homebuyer MUST get their first loan through the HOME START Loan Program and then utilize the optional HOME START Tax Credit Advance Loan

in conjunction with the first mortgage as a short term 2^nd loan.

The 2^nd HOME START Tax Credit Advance Loan is at a 0% interest rate until June 30, 2010. If the loan is not repaid by June 30, 2010, then the remaining loan

amount becomes a ten year amortizing loan at 0.5% above the rate on the Home Start 30 Year Fixed Rate Loan. There is a $300 processing fee due at closing

for the 2^nd loan. The current interest rate on the Illinois HOME START Loan Program is 6% but will fluctuate with market conditions.

The assumption is that the new homeowner will repay the loan when their taxes are filed in 2010 and they receive their tax refund.

Although the federal First Time Homebuyer Tax Credit allows for a maximum credit of 10% of the purchase price up to $8,000, the maximum

HOME START Tax Credit Advance Loan is a maximum of 3.5% of the purchase price up to $6,000. So, for example, if you purchase a home for $100,000,

the maximum HOME START Tax Credit Advance Loan is $3,500 ($100,000 X 3.5%). To take advantage of the maximum HOME START Tax Credit Advance Loan at closing,

the homebuyer would need to purchase a home for approx. $172,000 or more.

Please note: Although you may not be able to get a 2^nd loan for the entire allowable federal First Time Homebuyer Tax Credit, you can still take a the full allowable

credit on your tax return. Using the same $100,000 example above, the federal First Time Homebuyer Tax Credit is 10% of the purchase price, which would be $10,000.

However the maximum allowable credit is $8,000. So when that 1^st time homeowner files their 2009 taxes, they will be able to claim the federal

1^st time homebuyer tax credit for $8,000 and use that credit to repay the 2^nd HOME START Tax Credit Advance Loan for $3,500.

You must purchase your owner-occupied 1^st home by November 30, 2009 to take advantage of the Illinois HOME START Tax Credit Advance Loan and/or

the federal First Time Homebuyer Tax Credit.

The first loan under the HOME START program is a 30 year fixed rate amortizing loan insured by the Federal Housing Administration (FHA) and

serviced by U.S. Bank Home Mortgage.

You can get further details on the federal First Time Homebuyer Tax Credit at http://www.irs.gov/newsroom/article/0,,id=204672,00.html .

More details on the Illinois HOME START Loan Program and HOME START Tax Credit Advance Loan and can be found at http://www.ihda.org/ViewPage.aspx?PageID=328 .

Participating lenders can be found at http://www.ihda.org/MapResults.aspx?ListTypeID=13&ListTypeSubID=8&County=will,du+page,cook .

1st Time Home buyer Tax Credit can now be used for down payment

2009-05-13T04:01:00Z

This afternoon in Washington, DC, Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, stated that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment. This is great news!

As I mentioned earlier, previously, most buyers would not receive the tax credit until after they filed their tax return after 12/31/09. For many buyers this was a determent since they need those funds now to close on the purchase of their home. The NATIONAL ASSOCIATION OF REALTORS® has been calling for a change in policy and today was successful!

“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday at "The Real Estate Summit: Advancing the U.S. Economy," in Washington, D.C..

He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term low-interest rate bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table. The funds will need to be repaid when received from tax return filings in 2010.

4-Level Split For Sale in Cook County

2009-05-06T06:00:00Z

• 4 bath, 10 bdrm 4-level split - MLS® $168,300

Cook County, Illinois - Corporate Owned brick 4 unit with seperate utilities. You will love the hardwood floors. Sold As-is. Seller does not provide survey, disclosures, termite or inspections. Tax proration 100%. Financed offers require 3% certified earnest money & valid pre-approval. Cash offers require 10% certified earnest money, valid proof of funds and 15 day close. Chase pre-qual required.

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6411 S. Maryland Avenue in Hyde Park is Sold!

2009-05-04T06:00:00Z

Hyde Park, Chicago - The 3 story at 6411 S. Maryland Avenue has been sold.

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2128 N Mobile Avenue in Cook County is Sold!

2009-05-04T06:00:00Z

Cook County, Illinois - The 2 story at 2128 N Mobile Avenue has been sold.

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1545 S.Tripp Avenue in West Chicago is Sold!

2009-05-04T06:00:00Z

West Chicago, Chicago - The 3 story at 1545 S.Tripp Avenue has been sold.

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3 Story For Sale in Cook County

2009-05-04T06:00:00Z

• 3 bath, 9 bdrm 3 story "Brick 3 Unit" - MLS® $84,200

Cook County, Illinois - Corporate Owned brick 3 unit sold as is, in need of repairs. Seller does not provide survey, termite or disclosures. Tax proration 100%. Financed offers req 3% certified earnest money and pre-approval. Cash offers req 10% certified earnest money, valid proof of funds and 15 day close. Seller offering 3% towards buyers closing cost. Buyer needs Chase prequal.

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Stimulus Tax Credit

2009-05-04T01:35:00Z

Click below for more information

Other For Sale in West Chicago

2009-05-01T06:00:00Z

• 2 bath, 2 bdrm other - MLS® $229,500 - Reduced

West Chicago, Chicago - CORPORATE OWNED unit has hardwood floors, in-unit laundry, private balcony, granite, maple, stainless steel, separate shower, & Jacuzzi tub. Sold As is. Seller does not provide inspection, survey, termite or disclosures. Tax proration 100%. Financed offers require 3% earnest money and pre-approval. Cash offers require 10% earnest money, valid proof of funds and 14 day close. Hurry! At this price, it won't last!

Agent Remarks: ***Show and Sell for $750 Bonus at closing****

Conventional,FHA, Cash Only

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2 Story For Sale in Cook County

2009-04-24T06:00:00Z

• 2 bath, 3 bdrm 2 story - MLS® $445,000

Cook County, Illinois - You want Beverly? Here it is...A beautiful, modern home in a fabulous neighborhood! Upgrades galore in this home including stainless steel and granite kitchen, beautiful baths with ceramic tile and modern fixtures, hardwood flooring throughout, spectacular park-like backyard with a 2-tier deck, separate living and dining rooms, and a sunroom with a flat panel televison that stays put! What more could you ask for?!

Agent Remarks: Pre-Approved buyers only for this lovely home. Show and Sell!

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Single Story For Sale in Cook County

2009-04-24T06:00:00Z

• 1 bath, 2 bdrm single story "Unit #1" - MLS® SALE PENDING $74,900 - Price Change

Cook County, Illinois - CORPORATE OWNED CONDO, SOLD AS IS. SELLER DOES NOT PROVIDE SURVEY, TERMITE OR DISCLOSURES. BUYER RESPONSIBLE FOR ANY CITY INSPECTIONS. FINANCED OFFERS REQ 3% CERTIFIED EARNEST MONEY AND PRE-APPROVAL CASH OFFERS REQ 10% CERTIFIED EARNEST MONEY, VALID PROOF OF FUNDS AND 15 DAY CLOSE.IF ANY. EARNEST MONEY WILL BE CERTIFIED FUNDS. BUYER MAY BE RESPONSIBLE FOR UP TO 6 MONTHS OF OUTSTANDING ASSOC FEES PER ILL. LAW

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2 Story For Sale in Cook County

2009-04-22T06:00:00Z

• 2 bath, 3 bdrm 2 story - MLS® $57,900 - Reduced

Cook County, Illinois - CORPORATE OWNED WITH HARDWOOD FLOORS AND FINISHED BASEMENT SOLD AS-IS. SELLER DOES NOT PROVIDE SUREY, DISCLOSURES OR TERMITE. BUYER RESPONSIBLE FOR ANY CITY INSPECTIONS.FINANCED OFFERS REQUIRE 3% CERTIFIED EARNEST MONEY AND VALID PRE-APPROVAL. CASH OFFERS REQ 10% CERTIFIED EARNEST MONEY, VALID PROOF OF FUNDS & 14 DAY CLOSE. SELLER OFFERING UP TO 3% TOWARD BUYER'S CLOSING COSTS

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2 Story For Sale in Cook County

2009-04-22T06:00:00Z

• 2 bath, 3 bdrm 2 story - MLS® $599,000

Cook County, Illinois - Remarks: Home is what you feel the moment you enter this beautiful 2-story home. This property is well maintained & boasts with great features & improvements incl. 2 fireplaces, hardwood floors, newer windows & central air system. Home has an updated electrical system, newer sump pump, & bathroom on every level. There is a spectacular rec room with built in surround sound capability, ready for hours of enjoyment. Come see!

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3 Story For Sale in Cook County

2009-04-17T06:00:00Z

Potential Condominium

• 4 bath, 4 bdrm 3 story "12 Unit" - MLS® $630,000

Cook County, Illinois - WOW, STUNNING 12 UNIT, BLONDE BRICK BLDG IN "PILL HILL NEIGHBORHOOD" MANY UPDATES TO THIS GEM!! ALL NEW WINDOWS, MANY NEW BATHS AND KITCHENS, HARDWOOD FLOORS AND NEW CARPETING IN BLDG. NEW HEATING AND 6 GARAGE SPACES for RENTING!! 1 UNIT DUPLEXED 2BR/2BA. GREAT INVESTMENT OPPORTUNITY!! POTENTIAL CONDO CONVERSION. DON'T MISS OUT!! GOOD TENANTS/GREAT BUILDING. PRIDE OF OWNERSHIP SHOWS. THIS IS IT INVESTORS!

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236 E. 142 Street in Cook County is Sold!

2009-04-17T06:00:00Z

Cook County, Illinois - The 1 1/2 story at 236 E. 142 Street has been sold.

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