Buyers in Kane County – don’t buy a home without reading this first!

The spring market is underway in the Fox Valley!  It’s time to do a little spring cleaning and shake off the cold hand of winter to find your new home.  We’ve got a lot of new programs to help folks find the perfect loan program, including ultra low down payments, special terms for Kane County renters, great Illinois home incentive programs and more.  Check out this list and be sure to call for more details!

Kane County Buyer’s Program:
KANE COUNTY – Fox Valley First Time Home Buyer Programs

If you’re looking to buy right where you live, in Kane county, you’re in luck!  They offer a wonderful down payment assistance program for first time home buyers.  With a down payment of 1% of the purchase price, you can become a home owner instead of paying your landlord!  Ask about the other county specific programs available too.

But that’s not all!  There are many more programs available for home buyers to look into:

@HomeIllinois
@Home Illinois – an IHDA program

This program offering up to $5,000 in down payment and closing cost assistance for FHA, VA, USDA and Conventional loans.  Qualifying borrows include first time buyers, veterans, repeat buyers and those who want to refinance.  Borrowers must meet income and purchase limits, credit requirements and contribute $1,000 or 1 % of the purchase price, whichever is greater.

1stHome Illinois
1st Home Illinois – an IHDA program

This is a program similar to IHDA’s (see above) but is only available to first time buyers and veterans purchasing a home in Boone, Cook, DeKalb, Fulton, Kane, Marion, McHenry, St. Clair, Will and Winnebago counties.  Qualifying buyers get $7,500 cash assistance for down payment and closing costs for a low-cost 30 yr fixed rate mortgage.  They must contribute $1,000 or 1% of the purchase price whichever is greater.  

FHA Loans
HUD for FHA Loans

This is a very popular type of loan for first time home buyers.  This is a federally backed mortgage by the Federal Housing Administration (FHA) and offers a 3.5% down payment, low closing costs and the less-than-perfect-credit score is accepted.  Limits on the purchase price in the Chicago land area are up to $365,700  Check the link below for details.

FHA Home Loans by First Click Mortgage

 

HomeReady Mortgage by Fannie Mae
HomeReady Mortgage by Fannie Mae

HomeReady offers a 3% down payment option for eligible low-to-moderate income first time and repeat buyers.  Additional income sources will be considered an all co-borrowers don’t have to live in the property.  Home buyers must complete a home ownership education course.  

Home Possible Advantage by Freddie Mac
Home Possible Advantage by Freddie Mac

Home Possible Advantage is Freddie Mac’s version of the 3% down payment mortgage loan.  The program is also open to qualifying low-to-moderate income first time or repeat buyers or those purchasing in high-cost or under served areas.  First time buyers must complete home ownership counseling.  

USDA Single Family Housing Guaranteed Loan Program
USDA Single Family Housing

Buy a home in certain rural areas and you might not need any down payment at all.  This U.S. Department of Agriculture (USDA) program assists low and moderate income consumers buy homes in eligible rural areas, including many counties in Illinois.  A low interest, fixed rate loan can be used to build, rehab, improve or relocate a dwelling in an eligible area.  

VA Home Loan Program
VA Home Loan Program

VA loans are another great tool for veterans and their families looking to buy a home without a down payment.  The loans are only for qualifying veterans, active milityar members and eligible surviving spouses.  Guaranteed by the U.S. Dept of Veterans Affairs, the loans to do not require mortgage insurance.

Questions on the loan programs?

Contact a Senior Loan Originator with People’s Home Equity
Steve Smither
Senior Mortgage Adviser
NMLS #224681
1801 S Meyers Rd. #500
Oakbrook Terrace, IL. 60181
Cell: 847-942-5151
Fax: 847-701-3267

ssmither@peopleshomeequity.com

 

 

Did you know?

Fox Valley Homes is full of great home tips, ideas and programs for all levels of buyer and sellers.  In addition to helping owners with distressed homes and foreclosures,  Fox Valley Homes offers full broker service for regular listings,  rentals, buyers and home sellers, as well as investors in residential properties across the northern Illinois and Chicago region. We coordinate real estate transactions effectively and retain the full skills and expertise of fully licensed Realtors®, including access to the resources of the local Illinois MLS database.

For more information about programs to list or buy with Fox Valley Homes, please contact Jennifer Kinzle, e-PRO, SFR, (630) 854-4360. Email me direct  jkinzle73@gmail.com.

Contact me:

Jennifer Kinzle, e-PRO, SFR Broker
Direct/Text:  (630) 854-4360
Email: jkinzle73@gmail.com
Twitter: @jkinzle
Instagram: @jkinzle

Facebook: Fox Valley Homes – Jennifer Kinzle, Broker
Fox Valley Investors Group: Fox Valley Investor Group – on Facebook
Website:  www.FoxValleyShortSales.com
MeetUp: Fox Valley Investors MeetUp Group

Charles Rutenberg Realty of Illinois
3135 Book Rd
Naperville, IL 60563
LIC 481.010.165

New Home Buyers: Risks and Benefits of Rent To Own

Planning ahead on your home ownership dream?

If you are ready to kick your home search into full gear,  consider an option like a rent to own.  Less than perfect credit scores and loads of flexibility are two pluses when buying a home as a lease to own.  

A rent to own option works like this: a buyer is given the “option” to purchase the home at some point in the future at a specified price.  A traditional sale brings the buyer and seller together to complete the purchase quickly, after agreeing to terms.

Instead, with a rent to own transaction, the final purchase is delayed.  The buyer and the seller agree to the possibility of the sale at a future date and it may or may not occur.  The buyer or seller can back out of the agreement, by simply not accepting the sale when the agreement is ended.  In the meantime, the renter decides if they want to make the purchase, often paying additional funds to the seller, to decrease the amount of money needed toward purchase price.

Benefits for Buyers:

Renters can buy even with bad credit: Often dinged on credit scores, renters may not qualify for a traditional conventional home mortgage.  But they may be able to repair their credit with a solid report of their regular monthly payments over the long term.

Lock in a purchase price: Renters can agree with the sellers as much as 12 months 9 or more) ahead on the purchase price.  They can put extra dollars toward the purchase of the home, setting up a discount for when they finally do close.  

Take it for a Test Drive: Try it before you buy it!  Renters may fall in love with the home even more while under the option.  Or they may decide the property isn’t the home of their dreams and decide to skip it at the end of the agreement.

 

Risks for Buyers:

Forfeiting money: If for some reason, you don’t buy the home, you lose all of the extra money you paid.  

Slow progress: If you plan on getting that raise or improving your credit score, and it doesn’t quite work out, you may be unable to commit to the sale when the agreement ends.  

Less control:  This is a tricky part because while you inhabit the property, you don’t have control over it (yet).  For example, your landlord could skip making mortgage payments, not pay the taxes or wind up with a contractor’s lein.  These are outside of your control.  Be sure to have it in your agreement to address these scenarios, including the landlord cannot sell to another buyer while under the option to you.  

Falling prices:  This is not a consideration for the current home market, but it was a few years ago.  If home prices fall during your contract, you may be unable to renegotiate the purchase price.  Then you are left with the option of forfeiting all your option money or buying the house at a higher than market value price.  If your lender won’t approve an oversized loan, you’ll need to bring extra money out of your own savings to the closing table to cover the difference.

Late payments hurt: Just like a traditional mortgage, missing monthly payments can penalize you.  Your lease to own agreement may include a qualifier clause that you must make all payments on time, you may lose the right to purchase (and lose your extra payments).  In some cases, you keep your option, but your extra payment for the month is not “counted” towards the eventual purchase.

Home Issues: There might be problems with the property that you don’t now about until you try to buy it (as noted with tax liens, deferred maintenance and title problems).  It’s best to treat a rent to own property like a “real” purchase and get the reassurance of a full home inspection and title search.

Scams: Protect yourself and the sellers by hiring a reputable attorney to review the sales contract and go over all the requirements to successfully purchase he home.  A home purchase is a major investment, so be sure to do your due diligence.  If it sounds too good to be true, it probably is.   

Contracts:

If you’re interested in finding out more about rent-to-own a home contracts, check out  a sample agreement for your state that protects both the home owner and the tenant.

https://www.rocketlawyer.com/document/rent-to-own-agreement.rl#/

There are many sample rent-to-own agreements and templates online that you can customize and use.  Before using a template however, you should review laws in your state and common items included in a contract to ensure you covering all bases prior to signing a contract. 

I always suggest that you consult with an attorney prior to signing any lease-to-own contract or drafting a contract for your home.  It’s a big investment, and you’ll want the peace of mind that comes with a well prepared contract to help protect yourself.

 

Did you know?

In addition to helping owners with distressed homes and foreclosures,  Fox Valley Homes offers full broker service for regular listings,  rentals, buyers and home sellers, as well as investors in residential properties across the northern Illinois and Chicago region. We coordinate real estate transactions effectively and retain the full skills and expertise of fully licensed Realtors®, including access to the resources of the local Illinois MLS database.

For more information, about Fox Valley Homes, please contact Jennifer Kinzle, e-PRO, SFR, (630) 854-4360. Email me direct  jkinzle73@gmail.com.

 

Contact me:

Jennifer Kinzle, e-PRO, SFR Broker
Direct/Text:  (630) 854-4360
Email: jkinzle73@gmail.com
Twitter: @jkinzle
Instagram: @jkinzle

Facebook: Fox Valley Homes – Jennifer Kinzle, Broker
Fox Valley Investors Group: Fox Valley Investor Group – on Facebook
Website:  www.FoxValleyShortSales.com
MeetUp: Fox Valley Investors MeetUp Group

 

Charles Rutenberg Realty of Illinois
3135 Book Rd
Naperville, IL 60563
LIC 481.010.165

 

Fox Valley Home Shortage?

This spring, it hasn’t taken me a very long time to run through the full list of properties available in the lovely Fox Valley area for my select buyers.  It is a short list!  While home buyers may be stuck with low inventory, home sellers are enjoying the sellers market for the first time in years.  

 

The housing inventory levels for an average market, are about 6 months’s worth of inventory during the year, but there is far less currently available now.  Today’s home buyers are seeking great homes with super low mortgage rates, and are willing to compete in bidding wars for the best ones if necessary.

 

Where are all the houses?  Been there, seen that

Adjust your expectations:
Fewer homes on the market can mean it may take longer for you to find the right one or even changing your expectations.  A willingness to compromise can go a long way to getting you into the perfect place.  Perhaps a finished basement can be skipped but a 3rd bedroom is a must.  If you prefer newer homes, but the city is full of turn of the century farmhouses, you may need to reconsider the style.  Or buyers may need to expand their search radius, increase their budget, or consider buying something that may need fixing up.  

Adjust your search:
Optimize your property search by getting the latest listings emailed to you once, twice or even as they hit the MLS!  Homes may be on the market for a day or two and have offers already in place if your search is slowed down.  Catching the listings as soon as they are activated can mean previewing them the same day or next day.  Consider talking to your agent about the best times to arrange showings for you and work around your schedule so you don’t miss a preview.

Adjust your offer: 
An experienced agent, like myself, can help you put together the best offer with a strong, personal letter, a pre-approval mortgage note from a local lender, and properly signed paperwork.  Using services to collect electronic signatures under Docu Sign or Adobe Digital Signature, will help get your offer in the same day and avoid any delays.  I also can monitor the status of the deal and send regular updates as it progresses.  Working out the price is just one part of the real estate transaction.

 

 

Did you know?

Fox Valley Homes is full of valuable seller marketing strategies and ideas.  In addition to helping owners with selling,  Fox Valley Homes offers full broker service for regular listings,  rentals, buyers, as well as investors in residential properties across the northern Illinois and Chicago region. No other agent runs an Investor Meetup Group like Fox Valley Homes!  We coordinate real estate transactions effectively and retain the full skills and expertise of fully licensed Realtors®, including access to the resources of the local Illinois MLS database.

For more information, about Fox Valley Homes, please contact Jennifer Kinzle, e-PRO, SFR, (630) 854-4360. Email me direct  jkinzle73@gmail.com.

Contact me:

Jennifer Kinzle, e-PRO, SFR Broker
Direct/Text:  (630) 854-4360
Email: jkinzle73@gmail.com
Twitter: @jkinzle
Instagram: @jkinzle

Facebook: Fox Valley Homes – Jennifer Kinzle, Broker
Fox Valley Investors Group: Fox Valley Investor Group – on Facebook
Website:  www.FoxValleyShortSales.com
MeetUp: Fox Valley Investors MeetUp Group

Charles Rutenberg Realty of Illinois
3135 Book Rd
Naperville, IL 60563
LIC 481.010.165

Homeowners vs. Investors

 

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“I’ve never bought a home.  Should I look at my first home as an investment?”

This question came up recently at my Fox Valley Investors Group MeetUp.  (details: Fox Valley Investors  ) .  Our group is open to everyone and we get folks of all experience levels, backgrounds and ages when we do our on-site property evaluations.  It was great how this person took the first step into a broader world of real estate by coming out to the property evaluation, and didn’t have any expectations about investing in property.

I took the liberty of explaining how a personal home is not the same as an investment property. Everyone needs a roof over their head,  but a property investor has a few extra.  The difference between investing and home ownership is huge.  Here’s my take:

99 problems plus your own home
A homeowner has one roof, one furnace, one set of pipes and one water heater to worry about.  An investor typically has their own home plus several others on their worry list.  Investors inherit new problems from other locations such as running background checks, deciding on lease terms, fixing broken furnaces in winter,  leaky roofs, calls in the middle of the night on plumbing and weekends, too.  Working a regular 40 hour/week job?  Consider how you’ll handle those extra fixes and issues on your nights and weekends year round.

“But I love this house!” said no investor ever.
Investors don’t love their investments, they love with the profits and checks that come along with a successful business.  Falling in love with a house is not good for business and can undermine a sound business plan. However, falling in love with a house and envisioning cozy family holidays, Super Bowl parties with friends, a big garden, relaxing nights or a remodeled kitchen,  are the exact right reasons to make a purchase to enjoy for years to come.

X marks the spot
Homeowners live in their homes to enjoy them, to maintain them, and to do with as they please.   They might want a home close to work, by a nature preserve, something without stairs, or with a huge back yard.  Their personal preferences trump the investor card every time.  That’s important because building your life in a new home can be a great perk of home ownership. Often people move to a single family home after years of renting and paying a landlord.  The freedom to own your walls, ceiling, garage and basement without needing to share it can be alluring.  I’ve had new homeowners so excited to have a laundry room that they install the washer and dryer before unpacking a single box on Day One!  And if you’re ready to paint the walls in Fired Up Orange, now you can go for it!

Make it personal
Knowing the difference between a detached, professional business approach to buying an investment and falling in love with a white picket fence is important to understanding your first home purchase.

So go and search out those dream homes on the internet.  It’s an adventure to boldly walk through a front door of a house for sale to see if it is right for you!  Will it be as great in person as it looked online?  Maybe.  But one thing is for certain: your first home will be a great “investment”.  Absolutely, yes!  As long as you’re loving the roof over your head and the lifestyle it offers, you’ll be ahead every time you pay the mortgage.

So, what’s your motivation for buying a home?  Interested in investing in properties?  Have you tried a house hack like buying a fixer upper to live in as you fix it?  Find out if a house hack is right for you!  Attend our next meet up and learn from the local property pro’s.  Join us here:  Fox Valley Investors

Free Property Report
Property markets change every 90 days!  But folks sell homes all year long.  Take the first step and get a free market report by going here:
Free Property Report

 
Questions?  Contact me:
Jennifer Kinzle, e-PRO Broker
Charles Rutenberg Realty of Illinois
Email: Jkinzle73@gmail.com
Twitter: @Jkinzle
Web: St. Charles Fox Valley Homes

 

 

Basement Blues?

It happens every year.  Right after the holidays pass, the reality of a long, cold Illinois winter smacks us on the forehead.  We’ve got shut in fever and we’ll be looking for something to do in the tiny sliver of daylight we get in January.  But wait, there is another option.

Many folks already know the best way to deal with the dark and cold weather of winter in the Fox Valley area requires plenty of indoor activities and lots of imagination.  If you’re a parent with kids under age 5, you’ll be looking for some fun things for the kids to do indoors.  After running through the local library programs, South Elgin’s Never Grow Up playroom, friends’ playdates and kid classes, you might want to think about investing in your own basement!

As clutter keepers, basements rule.  But think about clearing out a section for play time out of that clutter and even an unfinished basement can be a change of scenery for the winter indoor playtime.  It can be as unfancy as a few area rugs to ward off a chilly concrete floor, plus a few bright lights and you’re good to go.  We hung a chalkboard on the wall and let the mess play out on the floor without worry or fuss when a masterpiece strikes back.  When we put the tricycle and scooters down there, the kids soon had a circle race track going and are wearing tracks in the floor with all the use.  Unfinished basements do come in handy!

photo by http://www.mynearestanddearest.com

In addition, a basement either finished or partially finished, can be a nice selling point for future residents when it is time to change homes.  Game rooms, wet bars, work out rooms and organized storage areas are all a plus when buyers are seeking a new home.

However, don’t put necessary home fix ups on the back burner, when considering a basement remodel.  The best bang for your buck is to start with the kitchen and baths in any house is always these two areas first, the rest can wait.  If you’ve already got those basics covered, then consider a basement update.  Ideally, if you’re planning on staying long term in the home (10+ years) remodel for yourself.  A full basement remodel that you enjoy for the long term is a worth while investment.

If you plan on moving out in 5 years or less, why not consider a remodel with an eye towards the next home buyer.   This is a short term investment, so get the basics done and don’t worry about the rest.  Homeowners  in this scenario are likely to recover a large part of the costs when they are ready to sell.

If all else fails, bundle up and head outdoors.  Although the daylight goes quickly, there’s a lot to enjoy right here in the nature loving Fox Valley area.

photo by Teklanika Nature Photography

 

 

 

$1.1M fixer-upper doesn’t add up

According to CNN’s report:

http://www.cnn.com/2014/07/06/business/london-property-peckham-1-1-million/index.html?sr=sharebar_linkedin

This trashed out dump of a property is listed on the market for $1.1M.  Ouch.  That’s some serious sticker shock for a property that you need to fix up before you can move in.  Fortunately for you, dear blog reader, I’ve got access to some outstanding deals right here, right now, in your area.

Check out the local market here in outlying areas of Chicago. We’ve got much better deals on stunning single family homes, condos and townhomes that will knock your socks off.

Why not search for a home right now, on your mobile or tablet?  Search the MLS database for free with my new Midwest Homes mobile app!

http://t.ikenex.com/?k=n0t

Note: Use 240766 for agent ID to log in.  

 

When you’re ready to find that perfect property, let me know and we’ll get the process underway.

Jennifer Kinzle, e-Pro Broker
Charles Rutenberg Realty Elgin Fox Valley
630-854-4360

 

Housing Market Improves in South Elgin

South Elgin, IL – Recent reports from the MLS database indicated that the property market is on an upward streak.

Homes are going under contract fast!  We are going under contract in just over 2 months’ time from the date a listing begins.

South Elgin property prices are on the upswing this spring and summer!  This reflects an average 14% increase in sales prices as compared to the same time last year.

 

With average market time (Days On Market) dropping to under 90 days’ time, inventory is tight and homeowners are getting fast offers for top dollar.

 

Thinking of getting a market analysis on your home?  Contact me for details on getting one started.

Or, check out local homes for sale with a new mobile app, Midwest Homes by clicking here: http://t.ikenex.com/?k=n0t
Note: Use 240766 for agent ID to log in.  In case the setup gets interrupted, simply tap the link above again.

Eyes only-home inspection reports and radon concerns

Elgin Fox Valley, IL – Market Watch offers a buyer beware article on home inspectors.

http://www.marketwatch.com/story/10-things-home-inspectors-wont-tell-you-2014-05-30?link=MW_story_popular

This article highlights that a few reasons why you should get a licensed, professional home inspector to conduct your home inspection, but it is still buyer beware!  Few purchases can be as complicated as buying a home.  Let’s face it, anything that takes 8 weeks to finally close on is complicated.  The process may be tricky but the home inspection is plain.

You might not want to read an  extensive report on your new property.  But read it anyway!  The full report from your certified ASHI home inspector may be boring, but is very valuable to understand the general condition and issues with the property that you may need to address.  Remember, your broker is not liable for defects in the house, the homeowner is.  Get your full money’s worth and ask questions, and follow up questions if need be.  Some issues like plumbing or foundation cracks, are larger problems.  Others like broken outlets or a missing railing can be fixed easily.  Keep in mind that once an issue is found, it cannot be “unfound” and the next buyer who wants to inspect the home will see the same issue(s) come up again unless it is fixed.  It is in the best interest of the home seller to address any issues right away to ensure a smooth transaction.

Also, be sure to use your own inspector or get referrals to one from a trusted source.  Your real estate broker can offer local suggestions, but they are prohibited from offering one preferred inspector for you to use.

For example, not only did we hire a home inspector for our own home purchase, our inspector indicated our Elgin Fox Valley area has documented radon issues and to consider a separate radon test, as the house never had one done.  We found a radon testing company and set up the test.  Indeed, after the results of the radon test were compiled, the  stunning off-the-chart results almost caused the deal to fall apart.  However, after a bit of negotiation, an agreement to pay for the radon mitigation was added on the seller’s side and the deal was completed.

 

 

 

Get more house for less with reduced mortgage rates

Elgin Fox Valley – A new report from the Washington Post indicates that mortgage rates have dropped to their lowest point in six months to 4.21%.
http://www.washingtonpost.com/blogs/where-we-live/wp/2014/05/08/thirty-year-fixed-mortgage-rate-sinks-to-six-month-low/

These are not your grandparents’ rates for home mortgages.  Home buyers today enjoy the lowest rates (still) across the board on mortgages and have been accustomed to under 5% for more than a decade.  Back in the 1980’s rates flew into the double digits and sat there for a while.  When was the last time your home mortgage rate compared favorably to a car loan?  Home buyers can buy homes for less than a new car payment here in Elgin and parts of the Fox Valley area.

 

Infographic by allthingsfinance.net

There is never a “perfect” time to sell or buy, but consider this, these rates are not likely to last into the next decade, so why wait?

Contact a local residential real estate broker today and get a free market analysis on your neighborhood today!  Don’t have one?  Ask me for a referral to personal Realtor.

Jennifer Kinzle, e-Pro
Charles Rutenberg Realty, Elgin Fox Valley
Jennifer@ElginFoxValley.com
The highest compliment I can receive is a referral from friends and clients

Chicago Area Investors Scoop Up Cash Deals

Fox Valley area – A springtime Illinois market report wouldn’t be complete without an overview of the cash buyers.  According to a recent article in the Chicago Agent Magazine, Chicagoland area investors still have deep pockets.  A whopping 39.8% of sales as of January 2014 were all-cash deals.

http://chicagoagentmagazine.com/cash-sales-chicagoland-remain-quite-prevalent/

Inventory still remains limited and a strong offer of all cash still remains enticing versus an offer above asking price with financing.  First time home buyers are frustrated by the lack of choices and have longer wait times to find a desirable home.  Bringing a full price offer on a plain vanilla conventional mortgage, with no contingencies, and a 30 day close is the best way to show a seller a serious offer.  Buyers may be able to sweeten their offer with an escalation clause, however, these should be very limited in scope.

Jennifer@ElginFoxValley.com
Charles Rutenberg Realty Fox Valley Broker, e-PRO