First-Time Homebuyer Incentives

by Chicago Agent

The government is giving first-time homebuyers $8,000 for making their first purchase, but that isn’t the only incentive out there. The companies below are taking additional measures to nab the business of first-time homebuyers.

• Custom Mortgage is waiving all of their fees for first-time homebuyers, and has been practicing this for years, as they feel helping a new homeowner brings years of referrals and repeat clients. The client still has to pay third-party fees, but Custom Mortgage has relationships with title agents and attorneys that charge smaller fees than most. 

• At Sunset Ridge Estates, for a limited time qualified borrowers who finance through Chase Mortgage can get a 30-year fixed-rate mortgage with a low 4.99 percent interest rate and pay only a 3.5 percent down payment on any to-be-built home at the community (rates are subject to change without notice). 

• KLM Builders offers the following incentives to help first-time buyers: 
- CPS Grant Program
- TaxSmart
- Spot checks for FHA financing
- FHA 203K
- Amending decs and bylaws to remove “First Right of Refusal”
- Educations postings and blogs on thechicago77.com
- Free educational FHA 203K seminar series for agents

• Helen Weiss, vice president of Weiss Development Corp., says her company will match the government’s $8,000 at the company’s latest community, Lincolnshire Place at the Village Green, as well as at River’s Edge. River’s Edge also offers potential homebuyers discounts of up to $35,000 on four models currently available for purchase.

• Justin Lopatin, a first-time homebuyer specialist with American Street Mortgage Company, is extending his buyers a credit for their appraisal and inspection fees. 

• Dean Vlamis and Barry Schwartz of PERL Mortgage waive lender fees for clients who close with Jameson and PERL. Additionally, PERL has conducted first-time homebuyer seminars alongside Jameson agents, and episodes of the PERL Mortgage Podcast have focused on first-time homebuyers and have featured Jameson agents.

• At 250 N Myrtle, first-time buyers aren’t the only lucky ones, as the seller is offering an $8,000 credit to any buyer. Also, LW Reedy agents went through first-time buyer training and have a packet of resources to provide.

• Renaissance Loft Project guarantees a two-year, no-questions-asked, buy-back guarantee to help those nervous first-time buyers commit. 

• Cypress Mortgage is offering a first-time homebuyer incentive of $500 off the closing costs for any purchase prior to Dec. 31, 2009, known as the “Cypress Mortgage Economic Stimulus Incentive.” They are also offering to put homebuyers on their “Rate Watch” list at no extra charge. So if mortgage rates fall after closing on their new home, Cypress Mortgage will contact the buyer immediately for an opportunity to refinance to the lower rate.

• Angela Walker of LakeWest Realty is giving all first-time homebuyers a $300 Visa gift card at closing.

• Bank of America wants Realtors to know that buyers in Chicago can save thousands of dollars in federal income taxes with TaxSmart, a mortgage credit certificate program offered by the City of Chicago in partnership with local lenders. TaxSmart turns buyers’ mortgages into one that gives them a federal income tax credit equal to 20 percent of the interest buyers pay on their mortgage each year. TaxSmart can be used by eligible homebuyers citywide to purchase one- to four-unit buildings, single-family homes, condominiums, townhomes or two, three or four flats. Applicants must meet income and purchase price guidelines. Homebuyers in non-target areas must be first-time homebuyers or have not owned a home in the last three years. Visit cityofchicago.org/dcd, or call an approved TaxSmart lender for more details.

• A and N Mortgage Services offers a few special incentives that could help first-time buyers.
- CPS Grant Program: Offers excellent financing for all employees of the Chicago Public School system.
- TaxSmart Program
- A Step Beyond the Loan Process: Each mortgage consultant provides condo spot checks to Realtors and offers developer assistance on the FHA approval process.
- State-of-the-art marketing tools track the specifics on each client’s personal and loan information like: when rates drop, birthdays, loan anniversaries, amortization schedules, etc.
- FHA 203K
- Up-to-date postings and blogs on industry sites like thechicago77.com, and free monthly seminars and one-on-one consultations to inform clients of industry changes and beneficial products.

• Fifth Third Bank is offering first-time buyers, and everyone else, a .125 rate reduction on all purchases made now

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