New Year, New Goals for Homeowners and Homebuyers

Are you struggling to find a great New Year’s Resolution? As a homeowner, you may be wondering what you can do to improve your finances or keep your home safe. As a homebuyer, you may wonder what you can do to prepare yourself mentally and financially. Not to worry—CF Funding has a few ideas!

New Years Resolutions for Homeowners

One great resolution to kick off the new year is to improve and maintain your safe home habits. Check your alarm system and smoke detectors to make sure they are running properly. Reduce the risk of fire by checking for damaged appliance cords and “[Keep] clothes, curtains and other potentially combustible items at least three feet from all heaters,” according to the National Association of Home Builders. You can also implement a family emergency plan if you don’t already have one. For example, make sure contact information is easily accessible for children and an escape route is planned in case of a fire.

Another way to protect your family from disasters is to check up on your homeowners insurance. You may have purchased a great plan when you first bought a home, but if you have remodeled your home or purchased new items, you might need to expand your coverage. If your goal is to spend more time with family this year, consider taking on a home improvement project. Visit our new pinterest page at www.pinterest.com/cffunding/ for some fresh ideas.

A simple New Year’s resolution that many people overlook is to understand your credit history and credit score. Checking your credit history regularly can reduce the risk of errors, and knowing what affects your credit score both positively and negatively can help you to maintain a good score. A good score can lead to better rates on credit cards or a home refinance. If you are considering refinancing your home in the New Year, talk to a CF Funding loan specialist first. You may be able to reduce your interest rate or consolidate your debt.

Another way to save on your mortgage in the new year is to make extra mortgage payments. You could potentially cut years off your mortgage by making an extra payment each year.

New Years Resolutions for Homebuyers

One very important step in the homebuying process is to save for a substantial down payment on a home. If you have done your research or have purchased a home before, you know that down payments range from 5 to 20 percent, possibly lower if you are a veteran or qualify for an FHA loan. Saving up for a higher down payment can help to lower your interest rate and put more equity into your home from the start.

You may also want to check your credit report for inaccurate information before applying for a home loan. Understanding your credit is important for everyone, but especially for potential homebuyers. An error on your report could lead to a higher rate or denial of your application. One way to keep your credit in line is to watch your holiday spending. The holidays may be over, but the after-holiday sales are still in full swing. Opening store credit cards and raising your amount of debt for holiday spending can cause your credit score to go down and your loan rates to go up.

Attend a homeownership education course to learn more about the process of buying and maintaining your new home. There are plenty of classes available across the U.S. including seminars and online education. CF Funding also hosts classes for first-time homebuyers at local libraries. Check our

Facebook page or call 630-328-8900 for more info.

Build a great home-buying team to help you along the way. Your support team can make all the difference in the home buying process. That may include lawyers, agents, and of course our team of Loan Specialists here at CF Funding.

And finally, after moving in, Keep safety in mind by ensuring that your new home has working smoke detectors, locks, & alarm systems. Check to see that your homeowners insurance properly covers you in case of an emergency. If you don’t already have a family disaster plan, make one! You can find tools to help you at http://www.ready.gov/make-a-plan.

Do you have new years resolution ideas you would like to share with CF Funding? Visit us on Facebook at ww.facebook.com/cffundingcorp and leave us a comment!

Self-employed buyers can now Qualify using bank Statements!

Contact a CF Funding Loan Specialist for more information about this great program! Call 888-344-4080 or visit www.cffunding.com today.

Loan approval is subject to credit approval and program guidelines. Not all loan programs available in all states for all loan amounts. Interest rates and program terms subject to change without notice. Residential M ortgage Licensee # Illinois M B 0005978, California 6031932, Colorado, Tennessee 11 4055, Florida M LD1082, Virginia MC-5825, Texas. Company NM LS # 202670.

CF Funding Offers IHDA Grant for First Time Homebuyers, Military Personnel

CF funding shares exciting news for first-time homebuyers and military personnel this week, as the lender is approved to provide down payment assistance through the Illinois Housing Development Authority’s Welcome Home Illinois Program. Qualified homebuyers, which may include first-time homebuyers, active military personnel, veterans, and those who have not owned a home in the past 3 years, could qualify for $7,500 or more in grants to help cover down payment costs as well as additional funds for renovation. The program also offers below-market interest rates and a variety of loan options including FHA, conventional loans, and USDA loans.

In order to qualify for this limited-time program, homebuyers must purchase a one or two-unit property within Illinois, and live in this property as a primary residence. The homebuyer must contribute one percent or $1,000 of the purchase price, whichever is greater.

CF Funding is excited to start providing the grants to homebuyers, as IHDA’s programs not only provide down payment assistance, but can also allow federal tax credits that can reduce income tax liability by up to $18,000 over the life of the loan. Tax credits may apply to the Smart Move Trio program (for first-time homebuyers), or Welcome Home Heroes program (for veterans and active military personnel).

Another program that CF Funding now offers through IHDA is Illinois Building Blocks, which “helps strengthen communities with programs that turn vacant homes into valuable homeownership opportunities.” Eligible communities in this program include Belleville, Berwyn, Blue Island, Champaign, Chicago Heights, Cicero, Crest Hill, Joliet, Lockport, Lynwood, Maywood, Melrose Park, Park Forest, Peoria, and South Holland. According to ihda.org, up to 75 homes will be available through the end of 2014. These rehabilitated homes are “professionally renovated and move-in ready. Improvements vary in each house but may include HVAC, electrical, roof, updates to bathrooms and kitchen… etc).This program is also available to non-first-time homebuyers! Down payment assistance is slightly higher in this program with up to $10,000 cash for qualified buyers.

A refinance program called Smart Move Plus is also now available through CF Funding, which allows a 30-year fixed rate mortgage with competitive interest rates, and a variety of loan options to choose from including FHA, Conventional, VA, and USDA.

To apply for an IHDA loan, homebuyers should visit the lender online at www.cffunding.com or call 888-344-4080 today.  

Single-Family Home Starts Grow 6 Percent in February

The warm March weather caused an increase in housing starts last month, as single-family home starts grew 6 percent in comparison to February’s estimate. New home starts for privately-owned buildings were up about 2.8 percent from the revised February estimate, reaching 946,000 in March (seasonally adjusted annual rate). Although these increases also come with losses, as fewer permits were issued and fewer homes were finished in comparison to February, CF Funding is optimistic that housing starts will bounce back as the weather continues to improve.

Other stats in the U.S. Department of Housing and Urban Development’s Building Permits Survey include a 0.5 percent increase in single-family building permit authorizations as compared to February, and a 3.8 percent decrease in single-family housing completions as compared to the revised February rate. In March, there were 79,100 housing starts (on an unadjusted basis) as compared to 63,100 in February. 54,000 of those were single family units, as compared to 41,000 in February. On a non-seasonally adjusted basis, approximately 83,000 permits were issued in March, as compared to 70,500 in February.

CF Funding is happy to share that the Midwest saw large increases in permits, with a 26.0 percent increase month-over-month and an 18.7 percent increase year-over-year. According towww.mortgagenewsdaily.com, “Housing starts [in the Midwest] rose 65.5 percent from February and were 2.9 percent above the same period in 2013. There were 14.1 percent fewer completions than in the previous month but 15.5 percent more than a year earlier.” The West saw an unchanged rate of permits issued, and the Northeast saw a 33.3 percent increase. The South unfortunately saw a decrease in permits issued, with 17.1 percent less than February and 1.1 percent less than one year previous.

The Building Permits Survey is based on a voluntary mail survey by building permit officials. For more information visit www.census.gov.

Those who are looking to build a new home or remodel in 2014 should contact CF Funding Corporation for the best construction mortgage options, including our new Express Home Loanand One-Time Close Construction Mortgage. Those who are looking to buy a home should start shopping sooner than later to avoid rising prices. Lock in a low interest rate by contacting a CF Funding loan specialist at (888)344-3080 or http://www.cffunding.com.

Vacation Sales Rise Strongly in NAR Survey

According to the National Association of Realtors’ 2014 Investment and Vacation Home Buyers Survey, vacation-home sales rose 29.7 percent last year to reach 717,000. This is quite a large jump in comparison to the previous year’s 553,000. At the same time, investment-home sales decreased by 8.5 percent in 2013, at 1.1 million in comparison to 2012’s 1.21 million investment home sales.

Vacation home sales represented 13 percent of all transactions in 2013. The improvement in vacation home sales was expected by NAR Chief Economist Lawrence Yun, who said “growth in the equity markets has greatly benefited high-net-worth households, thereby providing the wherewithal and confidence to purchase recreational property.” CF Funding is happy to see an improvement in this market, although vacation home sales are still not at their peak levels seen in 2006 (about 1/3 less). The average vacation homebuyer was 43 years old with a median household income of $85,600. Most properties purchased were within 180 miles from the purchaser’s primary residence, and 46 percent were within 100 miles.

CF Funding expected a decrease in investment activity as prices rose in 2013, as confirmed by Lawrence Yun. Yun addressed the decrease in investment purchases by explaining that “prices were rising quickly [in 2013] along with a declining availability of discounted foreclosures over the course of the year… In 2011 and 2012, investment property was a no-brainer because home prices had sharply overcorrected during the downturn in many areas, creating great bargains that could be quickly turned into profitable rentals. With a return to more normal market conditions, investors now have to evaluate their purchases more carefully and do their homework.” About 47 percent of investment home purchases in 2013 were distressed sales, and the median investment-home price was $130,000.

According to the NAR, the 2014 survey includes answers from about 2,203 homes purchased during 2013, and is controlled for age and income to limit biases in the characteristics of respondents.

Homebuyers looking to purchase a vacation home should contact CF Funding Corporation today for a free preapproval. Now is a great time to buy, but rates are rising! Call (630)328-8900 or visit www.cffunding.com.