TEMPTED BY LOW PRICES BUT INTIMATED BY THE COST OF REPAIRS? HERE'S HOW TO DO IT!
Many first time buyers are confused about how to take advantage of today's low prices, but don't have the cash reserves to make necessary repairs. Read on!

FHA (Federal Housing Administration) is the government-insured mortgage program that allows purchasers to buy a home with little or no money down and has been a favorite among first-time buyers for many years. Using a combination of FHA features, a first-time buyer can truly buy a home and fix it up even if they have very little cash! Here's how it works!

First, the home you intend to purchase using FHA financing must be your primary residence and you must intend to reside there. Then, the first thing you should do is get pre-qualified to determine the maximum mortgage amount a lender will lend you, depending on your income and current debt. This is to make sure you are shopping in the right price range. Pre-qualification is free and can be done over the telephone. In today's mortgage climate, it's critical to get pre-qualified by a local, reputable lender so call me for recommendations. Once you have your maximum mortgage amount, we go to the next step!

FHA requires a buyer to demonstrate access to 6% of the purchase price of a given home. Let's say you are considering a home priced at $100,000. Your closing costs will be estimated at $3,000 (or 3%) and the required FHA downpayment is approximately $3,000 (3%). Therefore, a buyer will have to show the lender where they will be obtaining the 6%.

FHA permits the seller to pay the closing costs on behalf of the buyer, so the required 3% closing costs can be demonstrated by including a provision in the sales contract whereby the seller agrees to cover this amount for the buyer at closing. So now you're down to needing just 3% for the down payment!

FHA further permits a buyer to obtain a gift for the 3% down payment, such as from a family member. For those who do not have family to give them this large sum of money, there is a grant program available that is acceptable to FHA.

AmeriDream is a 501C(3) not for profit corporation that provides down payment grant money to buyers! In addition to requesting the seller pay the 3% closing costs, a buyer can request the seller make a donation in the amount of 3% of the sales price to AmeriDream in the name of the buyer. AmeriDream then grants the down payment back to the buyer.

In the case illustrated above, our buyer has received the 6% required by FHA from the seller, and is now in a position to purchase the home with no cash needed, but is still within the guidelines allowed by FHA.

Now let's say the home needs repairs, and the buyer does not have the cash reserves to restore the property.

FHA 203K Streamline is a mortgage program which follows all of the above FHA guidelines, but also allows the buyer to increase the amount of the loan to cover the required repairs. An FHA approved inspector will view the property and assess a dollar amount to the repairs necessary.

Let's say our buyer negotiated a price of $100,000 for a foreclosed property, and the bank/seller is willing to contribute the 6% necessary, but the home requires $15,000 in repairs. The sales price would remain at $100,000 but the amount of the mortgage would be increased to $115,000.

The $15,000 for repairs is held by the mortgage company following the closing, and as repairs are made the contractors are paid by the lender from the money reserved at closing.

Now our buyer has purchased the home with no money down, and rolled the cost of the repairs into their monthly payment. The result is a nicely repaired property with an affordable payment and no cash needed from the buyer!

If you're still renting but would rather own your own home, please call me for details on FHA, AmeriDream and FHA 203K Streamline financing. With today's low interest rates coupled with drastically low prices found on foreclosed properties, don't miss the opportunities presented by today's market!

HUD Homes 
I am a registered HUD agent and can submit a bid on your behalf. Browse available HUD properties, view the property inspection report and pics at http://www.hmbireo.com/listing.php

FACING FORECLOSURE? BEHIND ON PAYMENTS? 
If you are facing foreclosure or are delinquent on payments, DO NOT WAIT another day to call for help. The banks are swamped with phone calls, hotlines are overloaded and there is not enough help to go around. AS LONG AS YOU STILL OWN YOUR HOME, you have the right to try to SELL IT to avoid foreclosure - up until the very last minute!

Other options for homeowners in distress include:

• Forbearance
• Partial claim
• Deed in lieu
• Short sale

. . . and several more! But not all mortgages qualify for all options. Unless a homeowner knows specifically what to ask for, the lender may not offer all potential options. In trouble? I will visit your home personally, discuss your options and even call your lender on your behalf to determine your options. Please don't lose your home . . . call for help immediately. Call my cell (708) 785-2911.

SELLERS
Wondering why some homes are selling in this market while others seem to just sit? Are you considering selling your house in the coming months? Ask me about my three-steps to a top-selling price: 
1. Monitor the market with "My Property Finder"
2. Obtain a current market value assessment.
3. Get my tips for dressing your home for maximum selling price.

BUYERS 
View ALL the properties listing for sale in your market through "My Property Finder". You will also have access to the advanced research tools available.

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RENTERS

Trust the purchase of your first home to Sue Rossi with 23 years experience. Click here to view the Four Easy Steps to Owning Your First Home!

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