Gene's Chicagoland Mortgage Blog

Financing for Condominiums VS Single-Family Residences

Financing for Condominiums

VS Single-Family Residences

Everyone can agree ...

Condominiums are "different" from single-family residences (detached, or an attached duplex) in many ways.

But they share commonalities as well, such as:

Both Condominiums and single-family residences can be owned, not just rented or leased
Financing options are similar for both types of property:

VA Loan: 0% Down (Has an "Approved List" of Condo Associations)
FHA Loan: 3.5% Down (Like VA, has its own "Approved List", but also allows for "Single-Unit Approvals)
Conventional: 3% Down or more (Are available on a case-by-case basis)

VA and FHA Condominium interest rates are essentially the same as those for a single-family home
Conventional Loans' interest rates could be slightly higher ... when putting down less than 25% of the purchase price
Credit Score requirements to buy or finance a Condominium remain the same as those for a single-family residential borrower

But there are some real differences between the two when buying and financing. Differences that can matter ... and Borrowers are often caught off-guard when they learn of them.

Some of those differences are:

Lenders typically require more documentation for Condominium financing
The financial status of the Condominium Homeowner Association (HOA) must be verified via a Condominium Association Questionnaire. The Condominium Association budget and HOA dues/fees must also be verified
Lenders typically require a copy of the Condominium Declaration and By-Laws (the Association's internal rules)
Borrowers, whether resident or investor, must pay a fee normally charged by the Association or management company to provide this required information (prior to closing).
The one time upfront fee, set by the Association or management company, is typically in the $100 to $250 range
If the borrower will not be living in the Condomnium (buying as an investment to rent) the Association's Declarations and By-Laws must allow for Rental Occupancy
Interest rates are higher for Condominium investors, as are down payment requirements (20% down possible, but ideally 25% down payment for Condominiums)

The bottomline is this: If buying a Condominium (or refinancing) and seeking a Loan Approval for it, the financial "health" of the Condominium Association and the information and answers provided by them or their designated management company will determine much.

Ask questions! And make sure to choose and work with a lender (and agent) that is informed and experienced conducting Condominium financing and well-versed in the differences between property types and how to get them closed efficiently and successfully.

Are you hoping to Construct, Buy, Refinance or Purchase a home or investment property in Chicagoland or somewhere else in Illinois or Wisconsin?

Looking for mortgage financing answers, options, solutions, and experienced assistance?
Contact me! I'll put my 40 years of Mortgage experience and expertise hard to work on your behalf.

I'm easily found at:

Gene Mundt

Mortgage Originator -NMLS #216987 - IL Lic. 031.0006220 - WI License #216987

American Portfolio Mortgage Corp

NMLS #175656

Direct: 815.524.2280

Cell/Text: 708.921.6331

eFax: 815.524.2281

www.genemundt.com

gmundt@goapmc.com

Gene Mundt, Mortgage Originator, an Originator with 40+ years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:

The Lincoln-Way Area, Will County, (New Lenox, Frankfort,

Mokena, Manhattan, Frankfort Square, Joliet, Shorewood, Elwood, Lockport, Wilmington, Crest Hill, Symerton, Braidwood, Channahon, University Park, Beecher, Plainfield, Bolingbrook, Romeoville, Tinley Park, Homer Glen, Crete, Peotone, Naperville, etc.), DuPage County, Kane County, Grundy County, the City of Chicago, Cook County, and elsewhere within IL & WI.

#WillCountyCommunities #PreApproval #mortgageconsultation #positioning #housingmarket #mortgageapplication #InterestRates #homebuying #refinancing #homeloans #talkwithalender #stoprenting #newconstruction #securerate #househunting #mortgage #ratelock

#GeneMundt #NewLenoxMortgageLender #ChicagolandMortgageLender #NewLenoxRealEstate #MokenaRealEstate #mortgageexpert

#FrankfortRealEstate #LincolnWayHighSchoolDistrict #LincolnWayHighSchoolCommunities #howmuchhomecanIbuy

#whatinterestratecanIget #timing #mortgageexpert #moneytalk #homeloansmadesimple #experiencecounts

#homebuilding #askquestions #housegoals #VAloans #home #homeloanpro #JolietMortgageLender #WillCountyMortgageLender #DuPageCountyMortgageLender #GrundyCountyMortgageLender #ChicagoHomeLoans #mortgageinfo #newconstructionloans #endloans #credit #creditreport #40YearsOfExperience #WisconsinMortgageLender #ChicagoMortgageLender #FHAloans #condoloans #investmentproperty #mortgageconsultation #LincolnWayAreaMortgageLender #personalfinance #mortgageprocess #homebuyingprocess #housingmarket

#FHA #condominiums #FHACondoFinancing #investmentproperty #condominiumassociation #CondoManagementCompany #DeclarationsAndByLaws #CondominiumAssociationQuestionnaire

#HOA #HOADues #HOAFees

Gene Mundt, Mortgage Originator - NMLS #216987, IL Lic. #0006220, WI Licensed. American Portfolio Mortgage Corp. - NMLS #175656 - IL Lic. #031.0006220

I am a 49 year veteran of the mortgage/banking industry with extensive expertise and education in mortgages, appraising, management, and financial planning. My assistance is ongoing, as I provide info, advice, and service leading up to, during, and following my clients' mortgage financing process. I aim to develop trust-based relationships that encourages asking questions freely.

New FHA Income Guidelines Deliver Approvals for Borrowers Facing COVID-19 Related Income Events

New FHA Income Guidelines Deliver Approvals for Borrowers Facing Covid-19 Related Income Events

July 2022 has seen some pretty advantageous changes taking place for FHA (Federal Housing Administration) borrowers ...

These changes, effective July 7th, 2022 and mandatory for all case assignments as of September 5th, 2022, could prove to be game-changers for qualified FHA mortgage applicants who previously experienced a loss of income due to the COVID-19 pandemic or employment gaps.

But while it's true that COVID-19 may have precipitated or kickstarted some of these changes, it was not the sole motivator.

It's no secret that the current housing market is facing challenges and has slowed down. FHA, as well as other government agencies, are looking for ways to meet those challenges and others head-on.

These newly-made FHA changes are much needed and go a long way to accomplishing just that. They come at a pivotal time for the American housing market.

Why?

There is strong evidence that COVID-19 took a real toll on our economy. Many Americans suffered what is called a "COVID-19-related economic event".

A "COVID-19-related economic event is defined as:

"A temporary loss of employment, temporary reduction of income, or temporary reduction of hours worked during the Presidential declared COVID-19 National Emergency".

These types of economic events "trickle down". They cause employment and income issues for households, hopeful homebuyers, and those wishing to refinance.

Again why?

Employment and income greatly impact the type of financing options available to borrowers. In some cases, it can affect if financing options are available to them.

These new changes address that reality and meet it head-on. The July 7th FHA changes directly speak to the following FHA underwriting guidelines:

Commission Income
Part-Time Employment
Overtime/Bonus/Tip Income
Gaps in Employment
Primary Employment
Employment by Family-owned Business
Self-Employment Income
Gaps in Self-Employment Income

The changes made to FHA income guidelines allow for greater underwriting flexibility when conducted in the FHA TOTAL (Technology Open To Approved Lenders) Mortgage Scorecard as well as manual underwriting.

Positive changes have been made to what is calculated as effective income and how effective income is now calculated.

So if you're hoping to:

Buy a home
Refinance a home
Have not recently spoken with a lender
Were denied mortgage approval under old guidelines

Contact a mortgage lender and inquire again.

The changes referred to above, as well as other recent changes made and those coming in the future, may deliver a different outcome should you newly apply for a mortgage.

Contact me now to find out more ...

I'm easily found at:

Gene Mundt

Mortgage Originator -NMLS #216987 - IL Lic. 031.0006220 - WI License #216987

American Portfolio Mortgage Corp

NMLS #175656

Direct: 815.524.2280

Cell/Text: 708.921.6331

eFax: 815.524.2281

www.genemundt.com

gmundt@goapmc.com

The Lincoln-Way Area, Will County, (New Lenox, Frankfort,

#GeneMundt #NewLenoxMortgageLender #ChicagolandMortgageLender #NewLenoxRealEstate #MokenaRealEstate #mortgageexpert

#FrankfortRealEstate #LincolnWayHighSchoolDistrict #LincolnWayHighSchoolCommunities #howmuchhomecanIbuy

#whatinterestratecanIget #timing #mortgageexpert #moneytalk #homeloansmadesimple #experiencecounts

#FHA #FHAJuly2022Changes #COVIDRelatedEconomicEvent #COVID19

Gene Mundt, Mortgage Originator - NMLS #216987, IL Lic. #0006220, WI Licensed. American Portfolio Mortgage Corp. - NMLS #175656 - IL Lic. #031.0006220

2022 - 4th of July Fireworks in Will County

2022 - 4th of July Fireworks

in Will County

All across Will County, streets will be filled with marching bands and parks and venues will be hosting all kinds of celebrations during the upcoming 4th of July holiday weekend.

If fireworks are a "must-see", you're in luck too ...

Many Will County, IL communities will once again be hosting firework celebrations. If at all possible, take this opportunity to visit one (or many) of our fantastic Will County communities with your family and friends over this holiday.

Celebrate our many freedoms, our Country's rich history, and its' many wonderful accomplishments ... and enjoy the spectacular firework shows and displays.

* Please Note: Due to pandemic surges and fire safety concerns, counties or cities may adjust or cancel events at the last minute, so double-check with organizers prior to heading out to events.

Will County Communities Holding Fireworks

Beecher:

What: 4th of July Fireworks
Where: Firemen’s Park, 673 Penfield Street, Beecher

When: Monday, July 4th, @ 9:30 pm

Channahon:

What: Channahon Fireworks

Where: Channahon's Community Park, 23304 West McClintock Road

When: Sunday, July 3rd, Dusk to 10 pm

Firework show hosted by: Village of Channahon & Three Rivers Public Library (This event is free)

Bolingbrook:

What: Bolingbrook Fireworks

Where: Bolingbrook Golf Club, 2001 Rodeo Drive
When: Monday, July 4th. Fireworks start @ approx. 9:15 pm

Note: Fireworks can be also viewed from John F. Kennedy Middle School, Eichelberger Elementary School, & Plainfield East High School

Frankfort:

What: 4th of July Celebration
Hosted by: Frankfort Park District

Where: Main Park, 200 S. Locust St., Frankfort

When: Monday, July 4th. Fireworks begin @ dusk

Joliet:

What: 2022 City of Joliet Fourth of July Fireworks

Where: Joliet Junior College Main Campus, 1215 Houbolt Road, Joliet
When: Monday, July 4th. Gates Open @ 6 pm.

Fireworks Show begins: Approx. 9:15-9:30 pm

Sponsored by: The City of Joliet & Joliet Junior College (JJC)

Joliet:

What: Fireworks

Where: DuPage Medical Group Field, 1 Mayor Art Schultz Drive, Joliet

When: Sunday, July 3rd.

Two extended fireworks shows after the Joliet Slammers game, starting at approximately 9:15 pm

Lockport:

What: 4th of July Fireworks
Where: Dellwood Park, Route 171 & Woods Drive, Lockport
When: Sunday, July 3rd. Fireworks begin @ dusk

Mokena:

What: Village of Mokena 4th of July Fireworks

Where: Held at Main Park, 10925 W. LaPorte Road.

When: Monday, July 4th. Fireworks begin at dusk.

(Admission is free for fireworks)

New Lenox:

What: 4th of July Fireworks

Where: New Lenox Commons, 145-199 Veterans Pkwy
When: Monday, July 4th. Fireworks begin at dusk (approx. 9:30 pm)

The Joliet American Legion Band will lead into the fireworks display with patriotic tunes.

Plainfield:

What: Fireworks Show

Where: Bott Community Park, 24550 W. Renwick Rd. & Plainfield Central High School, 24120 W. Fort Beggs Drive

When: Sunday, July 3rd. Fireworks begin around 9:15 pm

Romeoville:

What: 3rd Of July Fireworks (Sunday)
Where: Lukancic Middle School, Volunteer Park & Discovery Park, Romeoville.
When: Fireworks begin @ 9:30 pm
The Village will hold 3 fireworks shows to allow residents to view them from their homes. Choreographed music available on Star 96.7 FM radio

Tinley Park:

What: Fourth of July fireworks
When: Monday, July 4th. Fireworks begin @ 9:15 pm
Where: McCarthy Park, 16801 S. 80th Ave., Tinley Park

Wilmington:

What: Let Freedom Rock Independence Day Fireworks
Where: North Island Park

When: Friday, July 1st @ Dusk

Hope you have a chance to attend many of the celebrations and fireworks being hosted in towns across Will County ... but no matter your plans and celebrations, fly the flag ... and enjoy a very safe and wonderful 4th of July 2022!

I'm easily found at:

Gene Mundt

Mortgage Originator -NMLS #216987 - IL Lic. 031.0006220 - WI License #216987

American Portfolio Mortgage Corp

NMLS #175656

Direct: 815.524.2280

Cell/Text: 708.921.6331

eFax: 815.524.2281

www.genemundt.com

gmundt@goapmc.com

The Lincoln-Way Area, Will County, (New Lenox, Frankfort,

#WillCountyCommunities #Fireworks #WillCounty2022Fireworks #familyactivities #4thOfJuly #FourthOfJuly

#IndependenceDay #ChicagolandFireworkShows #4thOfJulyFestivals #LincolnWayCommunitysFireworkShows

#NewLenoxFireworks #MokenaFireworks #FrankfortFireworks #Manhattan4thOfJuly

#PreApproval #mortgageconsultation #positioning #housingmarket #mortgageapplication #InterestRates #homebuying #refinancing

#homeloans #talkwithalender #stoprenting #newconstruction #securerate #househunting #mortgage #ratelock

#GeneMundt #NewLenoxMortgageLender #ChicagolandMortgageLender #NewLenoxRealEstate #MokenaRealEstate #mortgageexpert

#FrankfortRealEstate #LincolnWayHighSchoolDistrict #LincolnWayHighSchoolCommunities #howmuchhomecanIbuy

#whatinterestratecanIget #timing #mortgageexpert #moneytalk #homeloansmadesimple #experiencecounts

#homebuilding #float #askquestions #housegoals #VAloans #home #homeloanpro #JolietMortgageLender #WillCountyMortgageLender #DuPageCountyMortgageLender #GrundyCountyMortgageLender #ChicagoHomeLoans #mortgageinfo #newconstructionloans #endloans #credit #creditreport #40YearsOfExperience #WisconsinMortgageLender #ChicagoMortgageLender #FHAloans #condoloans #investmentproperty #mortgageconsultation #LincolnWayAreaMortgageLender #personalfinance #mortgageprocess #homebuyingprocess #housingmarket

Gene Mundt, Mortgage Originator - NMLS #216987, IL Lic. #0006220, WI Licensed. American Portfolio Mortgage Corp. - NMLS #175656 - IL Lic. #031.0006220

The Blueprint for a Successful New Construction Purchase

The Blueprint for a Successful

New Construction Purchase

If you're a homebuyer that's either bought a home or been looking for one over the last year or so, you probably can verify this statement:

Being a homebuyer isn't for the faint-hearted.

Housing shortages ... the pandemic ... shifting interest rates, and more. Each has contributed to the current housing market being like no other in the past.

The housing shortage and rising rates have affected both potential and successful buyers alike. First-time homebuyers have been hit especially hard.

There is good news to report, however. Homebuilders have taken note of the shortage and the need for more housing.

As of this writing, my research shows there are currently over 728 new construction homes available for sale in the Chicago southland's Will County alone. And a great many of those homes are being built with first-time buyers (or those downsizing), in mind.

Buyers have taken note of this surge in new construction. As a result, I'm receiving a dramatically higher number of calls and questions regarding new construction financing.

Those calls include the questions:

How do you buy a new construction home?
How is it different from buying an existing home?
How and when do I get my financing for a new construction home?
What's the time period typically needed from contract to closing day?
Can I lock in an interest rate for my purchase?
More ...

Now, while existing home and new construction financing is vastly different in most ways, there is one important similarity between the two. That is regarding the need for buyers to speak with a lender prior to starting a search and viewing of homes.

When that very important pre-emptive step is taken, a buyer can be pre-approved. They can move forward fully aware and educated about their financing capabilities and options.

Simply, they know what they can (and can't) afford when starting their home search. This one action is extremely beneficial in a myriad of ways.

The differences that exist between the two forms of home purchase reveal themselves immediately. The first difference includes the viewing and touring of homes for sale.

A prospective new construction home build, at least in the Chicagoland area, is conducted from Model Homes and/or Sales Offices typically found within the subdivision/location under consideration. At new construction visits and consultations, homebuyers may or may not see an actual physical home. The home "viewing" may be in the form of house plans and layouts.

Buyers are often offered options to semi-customize their new home by the builder's sales team. Buyers choose customization features from a list or menu of items available. Possible upgrades and modifications are often discussed at this point too.

As a new construction loan officer: I suggest that any buyer considering the purchase of a new construction home work with a buyer's agent ... experienced in new construction purchases.

Have your buyer's agent at your side during all viewings, tours, and consultations with the builder's sales team. They'll represent your interests and be your advocate and advisor during your entire transaction.

Upgrades and modifications shown to you by the builder's sales team can be, to say the least, very tempting. But remember to pay attention to your bottom line (the pre-approval figure provided by your lender), as these options and customizations can run up costs on a home quickly.

(Again, this is why I so strongly urge buyers to be pre-approved for a loan prior to visiting a home or builder. With a pre-approval, buyers know what they can and can't afford (be approved for).

New construction buyers should also be aware that:

Most home builders will require a small deposit to hold a lot until a contract can be agreed upon
It is wise to negotiate a price first. Discussions regarding home building options, credits, and financing can take place afterwards. (Builders often try to intertwine these discussions. )
Homebuilders typically require a deposit or payment to be paid prior to the start of construction (typically 10% of the final negotiated Purchase Price)
Fully-completed new construction homes are sometimes available within subdivisions as well. Minor customizations are sometimes still possible and negotiable when purchasing these completed homes
Buyers should demand a full accounting from the builder on future tax bills on the fully-improved home, (not just taxes upon the lot)

With most new construction purchases (again, those in the Chicagoland area), builders usually have their own banking relationships or cash funds to complete the construction of their homes. The builder typically funds its own construction process.

However, a downpayment fee may still be required by some builders prior to the start of construction or at the signing of the contract. The remaining payment on the sale is made at the time of closing.

New construction buyers should know and fully understand the following prior to signing their contract:

The timeline/completion date for their home. Traditional timelines for new construction have run 90 to 180 days, but with supply-chain issues/pandemic delays, construction times are now sometimes running longer
Interest Rate Locks: Typically, interest rate locks run for 60 days, but some lenders offer 90-day locks. An even smaller number of Lenders will offer what is called an "Extended Rate Lock" to cover a buyer/borrower from start to finish/closing on a new home

As I stated above, only some lenders offer rate locks for an entire build-out ...

But some costs are typically charged by the lender in order to help offset the risk of rate increases that may take place. (Ask me about the options available to you during your new construction financing)

If you're a prospective new construction buyer that currently owns a home, but it has not sold yet, consider this prior to taking action:

How will you fund a deposit/downpayment needed by a home builder?
Does the home builder consider contingency deals?
If your home sells prior to your new construction completion, where will you live or stay until the new home is completed/Closing Day?

There's a lot to know and consider before you make a final decision regarding a new construction home purchase.

Do some homework first. Take the time to educate yourself. Be sure to ask questions of your builder (and loan officer) before you make your final decisions and contract for a home purchase.

Want to know more? Contact me to get started …

* Gene Mundt, Loan Officer - American Portfolio Mortgage Corp, is the preferred lender for GDP Homes. Please visit the GDP Homes website for further information on those homes offered by GDP ... or reach out to Gene Mundt regarding the special financing available for GDP Home purchases.

Are you hoping to Construct, Buy, Refinance or Purchase a home or investment property in Chicagoland or somewhere else in Illinois or Wisconsin?

Looking for mortgage financing answers, options, solutions, and experienced assistance?

Contact me! I'll put my 40 years of Mortgage experience and expertise hard to work on your behalf.

I'm easily found at:

Gene Mundt

Mortgage Originator -NMLS #216987 - IL Lic. 031.0006220 - WI License #216987

American Portfolio Mortgage Corp

NMLS #175656

Direct: 815.524.2280

Cell/Text: 708.921.6331

eFax: 815.524.2281

www.genemundt.com

gmundt@goapmc.com

The Lincoln-Way Area, Will County, (New Lenox, Frankfort,

#homeselling #PreApproval #mortgageconsultation #positioning #housingmarket #mortgageapplication #InterestRates #homebuying #refinancing #homeloans #talkwithalender #PreApproval #stoprenting #newconstruction #securerate #househunting #mortgage #ratelock

#GeneMundt #NewLenoxMortgageLender #ChicagolandMortgageLender #howmuchhomecanIbuy #whatinterestratecanIget #timing #mortgageexpert #moneytalk #homeloansmadesimple #experiencecounts #homebuilding #float #lockarate #askquestions

#housegoals #VAloans #home #homeloanpro #JolietMortgageLender #WillCountyMortgageLender #DuPageCountyMortgageLender #GrundyCountyMortgageLender #ChicagoHomeLoans #NewLenoxRealEstate #mortgageinfo #newconstructionloans #endloans #credit #creditreport #40YearsOfExperience #WisconsinMortgageLender #ChicagoMortgageLender #FHAloans #condoloans #investmentproperty #mortgageconsultation #LincolnWayAreaMortgageLender #personalfinance #mortgageprocess #homebuyingprocess #housingmarket #changes

Gene Mundt, Mortgage Originator - NMLS #216987, IL Lic. #0006220, WI Licensed. American Portfolio Mortgage Corp. - NMLS #175656 - IL Lic. #031.0006220

Gene's Chicagoland Mortgage Blog

Financing for Condominiums VS Single-Family Residences

New FHA Income Guidelines Deliver Approvals for Borrowers Facing COVID-19 Related Income Events

2022 - 4th of July Fireworks in Will County

The Blueprint for a Successful New Construction Purchase

Procrastination Does Not Pay When You Hope to Finance a Home

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