Sunday, February 22, 2009

1.5% Buyer Penalty to Help the Economy

What kind of incentive are Fannie and Freddie offering to help build buyer confidence and stimulate the economy? How about a 3/4% penalty charge for buyers with good credit that don't have 25% down payments! If your credit is under 700 try a 1.5% penalty. While I realize they are trying to cover their tail from future property value tailspins, it seems to me there needs a solution which will not prevent buyers from buying especially good credit candidates. The risk could be underwritten with perhaps a lesser penalty charged to these buyers. Some lenders are fighting this ridiculous amended clause, but unless more people are aware of this there will not be any change.

This article was posted on the NAHB e-letter I receive and I wanted to share the absurdity with my bloggers.

There are alternatives such as FHA but those come with great limitations. It is getting a little crazy out there and you need to be aware.

As of April 1, Fannie Mae and Freddie Mac are increasing the delivery fees they charge lenders based on FICO scores, downpayment amounts and other loan characteristics. Most major lenders already are pricing in these higher fees, effectively raising costs to borrowers immediately. Lenders can pass these fees on to the consumer in the form of higher interest rates rather than as an upfront charge. Under the new guidelines, even applicants who assumed that their FICO credit scores would get them favorable rates will be charged more unless they can come up with downpayments of 30% or more.

For example, a buyer with a 699 FICO score who brings a sizable downpayment of about 25% to the table will be hit with a 1.5% delivery fee at closing under the new guidelines. A buyer with a FICO score between 700 and 720 will pay an extra three-quarters of a point. Even someone with a 739 FICO — once considered a platinum guarantee of the best rates available — will get dinged with a quarter-point add-on. Condominium buyers who cannot come up with a 25% downpayment will be hit with a three-quarter point add-on penalty, no matter how high their credit score — simply because they are not purchasing a traditional detached, stand-alone house. Without congressional intervention or new marching orders from the companies’ regulator, the add-on fees are here to stay. But there’s an alternative available for just about anyone who wants to avoid the fees: Federal Housing Administration mortgages, where downpayments go as low as 3.5% and credit scores are not an issue for most applicants. (
Washington Post (2/14/09); Kenneth R. Harney

Wednesday, February 11, 2009

Featured Lakeview Multi-Unit Residence For Sale

This two-unit property Lakeview two-flat sits on a full size lot (24x125) in an RS3 zoning district on Chicago’s north side. The property is located at 3119 North Southport in the Lakeview neighborhood between Belmont Avenue (3200N) and Wellington (3000N) just south of Chicago’s popular destination Southport Corridor.

Property improvements include a two and one-half story frame two-unit residence with 2 car garage. The first floor unit includes a 2 bedroom plus office and one bathroom. The sunny bright unit includes in-unit washer and dryer and is currently leased until October, 2009 with a monthly rent of $1,745 including a garage parking space.

The second floor owner’s duplex unit includes a recently rehabbed 2 bedroom 2 bath unit with a bonus family room/office on the second level off the master bedroom. This sunny unit also includes an in-unit washer and dryer as well as an updated kitchen, hardwood flooring and pantry. There is a large deck off the eat-in kitchen which leads down to the fenced yard and two-car garage.

Great for live-in owner or solid rents for investor purchase. Review Walk Score on this property and all the features right outside the door including restaurants, shops and Belmont El stop

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Logan Square Featured Condo For Sale

Welcome to our featured condo for sale just a block off of Logan Square!

Absolutely stunning recently renovated vintage 2BR plus flex room condo in Logan Square ‘on the boulevard’ at 2443 N Kedzie Blvd. Large front living room, sitting area and ‘flex room’ with piano (pics) with extra wide entry foyer. New granite countertops with large deck for summer fun. Large bedrooms and ample closet storage.

Clean and move-in condition. A true must see. Secure parking space included in this price. Low taxes and assessments are only $225 per month.

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Bucktown Featured Property for Sale

Welcome to affordable living in Bucktown !

Absolutely stunning recently renovated vintage 2BR condo just off of Armitage and west of Damen in Bucktown at 2013 N Leavitt. Great starter residence with an unbeatable location at this price. A Walkers’ Paradise Walk Score of 92/100. Eat-in kitchen with granite countertops and a outdoor deck for summer fun. In-unit laundry and extra storage too. Clean and move-in condition. A true must see. Street parking a breeze. Low taxes and assessments are only $181 per month.

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Call Jim at 773.252.HOME or send him a text or email today to make appointment or for more details on this great Bucktown opportunity.