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Marilyn D. Glazer, GRI, CRS, CRB, M.S.Ed.

REALTORS Launch Program that Offers Cash Grants and Other Assistance to Help Low-Income Families Buy Their First Home

Program Includes Job-Loss Mortgage Insurance and Below Market Rate Loans
The Illinois Association of REALTORS (IAR), the Partnership for HomeOwnership Inc. (PFHO, a non-profit foundation of the Association), along with the Illinois Housing Development Authority (IHDA), the Mortgage Guaranty Insurance Corporation (MGIC), and the Chicago Federal Home Loan Bank (FHLB) announces the HomePower Mortgage Assistance Program, targeting individuals and families with income at or below 80 percent of the Cook County median income.

Applicants must be first-time homebuyers or not have owned a home within three years. In the initial phase, the program will serve seven communities of Cook County : North Lawndale , Humboldt Park , Albany Park , Englewood , Back of the Yards, Roseland, and Pullman . IHDA will supply $30 million in below-market, fixed-rate mortgage funds, the IAR and the Chicago FHLB will provide downpayment and closing cost grants, and MGIC will provide job-loss and disability mortgage insurance.

The program offers a truly unique approach that provides a combination of benefits and assistance to ensure the long-term success of the program's homebuyers. Among the program's components are:

  • Applicants must be first-time buyers at or below 80 percent of median income.
  • The Illinois Association of REALTORS has committed at least $250,000 in annual funding to provide forgivable grants of up to $5,000 per buyer for downpayment and closing costs. This funding is augmented by a recently approved grant of $250,000 for downpayment and closing costs from the Chicago Federal Home Loan Bank, through Harris National Association (formerly Harris Bank) in Chicago .
  • IHDA has committed $30 million in mortgage funds to provide 97 percent loan-to-value loans. With the grant funding provided above, buyers need only have one percent or $1,000 in funds (whichever is higher) to participate.
  • The program does not focus as heavily on credit scores for qualification as conventional financing, and builds safety and soundness repairs into the loan. These are typically two of the biggest hurdles for first-time buyers.
  • Prospective buyers work with a REALTOR with specialized training who understands the parameters of the program. Interested buyers should contact a participating REALTOR in the program. A list of certified REALTORS can be found at www.pfho.org . Or more information can be obtained by calling: 1-800-370-6697.
  • The PFHO educational program stresses the importance of maintaining good credit and helps buyers correct errors on their credit reports.
  • The Mortgage Guaranty Insurance Corporation (MGIC) will provide participants with its Mortgage Payment Protection Plan (MPP Plan), designed to protect participants from foreclosure in the case of involuntary unemployment or disability over the first five years of homeownership. The MPP Plan will be offered at no cost to the lender or the homebuyer. This is the first downpayment assistance program in the country to offer this kind of benefit.

REALTOR Donna Thomas of Palatine , Chairman of the Board for Partnership for HomeOwnership, said, “Buyers participating in this program are counseled on credit issues, including restructuring debt and correcting credit file errors. We put them in the best possible position to purchase and maintain a home. Our programs effectively strengthen our communities by building in ‘safety and soundness' repairs into the loans. This is particularly important in areas with aging housing stock and little to no affordable new construction. Loans that require a small downpayment are generally viewed as carrying a higher risk, especially now. We can show that an education and debt counseling component can lessen that risk.”

Chris Puszynski

HAPPY NEW YEAR!

In December 2000 I purchased my first PDA, a
personal digital assistant , sometimes referred to as a Palm. The original PDA'S were designed as personal organizers with basic features such as a date book, address book, task list and memo pad. The new PDAs combine computing , telephone/ fax , Internet and networking features , and can function as a cellular phone, fax sender, Web browser and personal organizer.

My PDA has been more valuable than I ever imagined. I have my complete address book with me at all times with information such as additional family member's names, directions, email addresses and (if a customer), properties we have seen.

Daily use and many new features made me decide to invest in a new version. My dilemma, though, was deciding which features were most important. Today's models are like having a mini laptop computer with you at all times. So before I could make a decision I needed to understand the latest technology. I had heard the terms “Bluetooth” and “Wi-Fi” but didn't quite understand what they were or how they worked. Although both technologies are wireless, they are by no means the same.

Wi-Fi (wireless technology) enables a person with a wireless-enabled computer or personal digital assistant (PDA) to connect to the Internet when in proximity of an access point . Our cell phones use a type of wireless technology.

Bluetooth is the standard for a radio chip device that is plugged into computers, printers, mobile phones, etc . Bluetooth is designed to replace cables by transmitting information at a special frequency to a Bluetooth receiver chip. The information received in the computer, phone, or PDA can be in data or voice forms.

By the way if, you're wondering where the Bluetooth name came from, it was named after a Danish Viking and King, Harald Blåtand (translated as Bluetooth in English). Harald lived in the latter part of the 10th century, uniting and controlling Denmark and Norway (hence the inspiration on the name : uniting devices through Bluetooth ). He got his name from his very dark hair which was unusual for Vikings; Blåtand means dark complexion. However a more popular, (but less likely reason), was that Old Harald had a inclination towards eating Blueberries , so much so his teeth became stained with the colour, leaving Harald with a rather unique set of molars. And you thought your teeth were bad...

I decided to purchase a Palm Life Drive . A new device……..so much to learn.

I look forward to seeing all of you this month!

Chris Puszynski
Chris@Concare.com.