First Time Homebuyer Info

So, I've told you about the new $8000 "Obama money" for first time homebuyers. But how exactly do you get it? It doesn't just magically appear in your bank account. And how do you know if you qualify?

Come to our info session Tuesday March 24 from 6-7PM to learn more! You'll also meet a lender who can tell you about 3.5% downpayment Federal loans, and you'll hear from a real estate attorney who can answer all of your questions.

Not only will we cover the $8000 tax credit, but I can tell you all about how to find a deal with foreclosures & short sales, and MUCH MORE.

Date: Tues 3/24

Time: 6-7PM

Location: 1840 N Clark, Chicago

Why: Because you want $8000 in free cash. And because we'll give you free food.

RSVP to me! (773) 467-5345 or eileen.mcauslan@cbexchange.com

FHA Financing - First Steps!

Federal Housing Administration (FHA) loans are the next big thing in real estate financing. The reason? These are the only low downpayment loans that have survived the turmoil of the lending world. First time buyers are particularly fond of these since they require only 3.5% downpayment. For that, you pay a slight premium usually in the form of a slightly higher interest rate, but for some buyers this type of loan is the only option.

The issue we run into with FHA loans is that the property has to actually qualify for the loan. This gets troublesome at times, especially in the condo world.

If you're going to be getting an FHA loan and you're interested in buying a condo, you have two options:

• Only look at condo buildings that are fully FHA approved
• Only look at condos that might qualify for FHA spot approval

The building management company can usually tell you if the building is FHA approved, or you can search online for approved buildings at https://entp.hud.gov/idapp/html/condlook.cfm.

If the building is not FHA approved, there are a number of criteria the condo itself must meet in order to get a spot approval on the individual unit. Without going through the entire spot approval process, you should start by finding out:

1) Does the condo association hold the Right of First Refusal? If they do, this condo will not be able to get an FHA spot approval. Skip it. On the flip side, if you're trying to sell your condo in a building that has the first right of refusal, you might consider talking to the association to see if they can change this rule in the condo by-laws. This might open the market for you and draw a larger buyer pool to your condo. But do this right away - because changing the by-laws might require getting past some red tape and take a little time.

2) What percentage of the condos in the building are owner-occupied versus rented? The building must be at least 71% owner occupied in order to be considered for an FHA spot approval. So if you're interested in a building full of renters and you're getting an FHA loan, forget it. Move along to the next building.

If you'd like help finding FHA approved condos, I know many in the Chicagoland area and am happy to help. Contact me anytime!

My Next House

"America's First Green Mansion", located Manalapan, Florida:

• 1.6 acres of gardens
• 15,000 square feet of mansion
• 7 bedrooms
• 11 baths
• Featuring: an aquarium wet bar, waterfall spa, floating sun terraces, bedroom ocean views you could only dream to witness, and more!

And the green factor -- it's entirely energy self-sufficient!

How does a 15,000 square foot mansion provide enough energy to power itself entirely? Well... it probably helps to have enough solar panels to cover two basketball courts, and a water system that collects enough runoff to fill a swimming pool twice a month, and environmentally conscious lighting system that also takes advantage of natural light.