Vacant homes in your neighborhood could cause a variety of problems. Home values may decrease or remain low; the neighborhood looks abandoned and unattractive, and there is the possibility of increased criminal activity. There are some great incentives for both prospective homeowners and investors to purchase vacant homes. I wanted to share with you a couple of programs that may be a great tool to help some of these vacant homes get sold and turn the neighborhoods around in a positive direction.
First, for those looking to purchase a house and actually live in it there is a down payment assistance program specifically designed for vacant homes in certain distressed neighborhoods.
IHDA (Illinois Housing Development Authority) seeks to help strengthen communities with programs that turn vacant homes into valuable homeownership opportunities, such as Illinois Building Blocks.
Illinois Building Blocks includes:
• $10,000 cash assistance to cover down payment and closing costs
• 30-year fixed rate mortgage with a competitive interest rate
• Variety of loan options to choose from, including FHA, Conventional, VA, and USDA
Eligible communities:
Belleville, Berwyn, Blue Island, Champaign, Chicago Heights, Cicero, Crest Hill, Joliet, Lockport, Lynwood, Maywood, Melrose Park, Park Forest, Peoria, and South Holland.
Eligibility:
• First-time and non-first-time homebuyers are eligible
Requirements:
• Contribute one percent or $1,000 of the purchase price, whichever is greater
• Purchase a one- or two- unit property within the eligible communities
• Live in property as primary residence
*Income and purchase price limits apply.*
For those that are looking to purchase homes to fix up and rent out, there is a renovation loan offered by Fannie Mae called the “Homestyle”. This allows the investor to acquire the property and finance the improvements to the house. This allows them to keep more of their money liquid and have more purchasing power. This is a program that not a lot of investors are aware of and not a lot of lenders are currently offering.
The requirements as an INVESTOR are as follows:
720+ credit score
25% down payment
1 unit properties
This will help get the vacant home sold.
If you have any questions regarding the programs that I have mentioned here, please don’t hesitate to call me at 312-391-2185 or email me at tina.szenasi@movementmortgage.com.
Contributed by Tina Szenasi, Branch Manager and Loan Originator at Movement Mortgage NMLS #192822
