Illinois Association of Realtors Housing Finance Panel

Transcription

1 Illinois Association of Realtors Housing Finance Panel Mary Kenney IHDA Executive Director March 26, 2012

2 IHDA 101 Created in 1967 by state legislation to finance the creation and preservation of affordable housing multifamily rental, single-family Self-supporting $11 billion invested to create 221,000 affordable units statewide Independent issuer of public bonds with a rating of A1/A+/AA- from Moody s Investors Services, Standard & Poor s and Fitch Ratings respectively

3 IHDA programs SmartMove standard product Targeted products Welcome Home Heroes financing package Grant programs New product Foreclosure Illinois Foreclosure Prevention Network Illinois Hardest Hit Program

4 SmartMove Provides affordable and secure homebuyer package for first-time buyers and veterans Springfield residents Patrick Kain and Lauren Cody took advantage of SmartMove to buy their first home.

5 SmartMove s advantages and opportunities Up to $6,000 in down payment assistance Low 3.75% interest rate Targets buyers with limited funds who need flexibility 620 minimum credit score FHA / VA / USDA and conventional insured products available

6 IHDA programs SmartMove standard product Targeted products Welcome Home Heroes financing package Grant programs New product Foreclosure Illinois Foreclosure Prevention Network Illinois Hardest Hit Program

7 Welcome Home Heroes financing package Governor Quinn launched in December 2011 To date, $14 million in reservations to help 130 military families buy a home affordably and securely Veterans (need not be first-time buyers) Active military personnel, reservists and National Guard members (first-time buyers) Features SmartMove product $10,000 grant forgivable over two years Up to $21,000 in a mortgage credit certificate (MCC) over span of 30-year loan

8 IHDA programs SmartMove standard product Targeted products Welcome Home Heroes financing package Grant programs New product Foreclosure Illinois Foreclosure Prevention Network Illinois Hardest Hit Program

9 Homebuyer grant programs First-time homebuyer grants offering at least $5,000 in down payment/closing costs First-time buyer program offering up to $40,000 for acquisition and rehabilitation Up to $30,000 subordinate loan assistance for low- to very-low income households Funds available through partner agencies listed at ihda.org

10 IHDA programs SmartMove standard product Targeted products Welcome Home Heroes financing package Grant programs New product Foreclosure Illinois Foreclosure Prevention Network Illinois Hardest Hit Program

11 Illinois Building Blocks single-family product Governor Quinn announced in February Berwyn, Maywood, Park Forest, Chicago Heights, Riverdale and South Holland $10,000 in down payment and closing cost assistance for buyers of vacant homes in six communities Buyers DO NOT have to be first-time homebuyers Properties must be vacant properties in the six communities Income and purchase price limits must apply Lower FICO score 600

12 List of lenders at ihda.org, or

13 IHDA programs SmartMove standard product Targeted products Welcome Home Heroes financing package Grant programs New product Foreclosure Illinois Foreclosure Prevention Network Illinois Hardest Hit Program

14 New product under development Open to all buyers not limited to first-time buyers Aligns with SmartMove mortgage product New competitive interest rate Launching this summer

15 IHDA programs SmartMove standard product Targeted products Welcome Home Heroes financing package Grant programs New product Foreclosure Illinois Foreclosure Prevention Network Illinois Hardest Hit Program

16 Illinois foreclosure problem Chicago home to nation s largest inventory of foreclosed homes nearly 100,000 at end of 2011 (RealtyTrac) Illinois property values dropped more than 11 percent in 2011 highest in nation (CoreLogic) On average, homes on the same block as foreclosed property can drop in value between $8,000 and $10,000 (Federal Reserve Bank of Cleveland)

17 IHDA programs SmartMove standard product Targeted products Welcome Home Heroes financing package Grant programs New product Foreclosure Illinois Foreclosure Prevention Network Illinois Hardest Hit Program

18 Illinois Foreclosure Prevention Network Governor Quinn announced in February Coordination of available foreclosure assistance resources New toll-free number: KEEP-411 ( ) Puts homeowners in touch with free counseling assistance, advice on how to avoid mortgage fraud, job search help, financial planning and other counseling services First Network event this Saturday in suburban Chicago with other regional events planned around the state

19 IHDA programs SmartMove standard product Targeted products Welcome Home Heroes financing package Grant programs New product Foreclosure Illinois Foreclosure Prevention Network Illinois Hardest Hit Program

20 Illinois Building Blocks Pilot Program Creates revolving fund to acquire, rehabilitate and return vacant singlefamily properties to market Cook County communities selected based on high vacancy rates, leverage of resources already invested, strong municipal support, job market and homeownership market

21 IHDA programs SmartMove standard product Targeted products Welcome Home Heroes financing package Grant programs New product Foreclosure Illinois Foreclosure Prevention Network Illinois Hardest Hit Program

22 $345 million foreclosure assistance program

23 Illinois Hardest Hit overview Applicants across state can qualify for up to $25,000 Temporary mortgage assistance to homeowners who have experienced an income reduction due to unemployment or substantial underemployment Assistance allows eligible households to keep their home while they work to regain employment and financial stability Some basic eligibility factors: Live in the state of Illinois Occupy the home as their sole, primary residence Have loan balance under $500,000 (interest-only is not accepted) Experience an involuntary loss of income 20 percent reduction (April 1)

24 Your public finance partner