Kuma’s Corner promotes a simple ethos on their website: “Support Your Community. Eat Beef. Bang Your Head.” Now with 5 locations in the Chicago area, this burger hub dishes up local, homegrown food, craft brews and spirits, and some seriously heavy metal. Each of their burgers is named after a famous heavy metal band. With so many mouthwatering choices on the menu, we had a difficult time deciding what to eat. We eventually settled on splitting the Mastodon: apple wood smoked bacon, cheddar cheese, frizzled onions, and barbeque sauce. We also shared a small house salad. The salad portion was much larger than I anticipated and was filled with crisp, fresh vegetables. The bed of red leaf lettuce was topped with cucumbers, carrots, red onion, cherry tomatoes, and a smoky basil vinaigrette. The burger was cooked to perfection, but other than that, I have to say, I was underwhelmed. I have heard so many great things about Kuma’s and this burger didn’t quite live up to my high hopes. However, a number of other burgers caught my eye on the menu that I’d like to go back and try. One of these, the Goatsnake, sounds just incredible: herbed goat cheese, poblano sweet corn relish, cholula lemon vinaigrette, and buttermilk breaded deep fried red onions. I was also intrigued by the High On Fire: roasted red pepper, prosciutto, grilled pineapple, sweet chili paste, and sriracha hot sauce.

We visited the Kuma’s Too location, at 666 W Diversey Parkway. The original Kuma’s Corner is located at 2900 W Belmont. You can find more information on other Kuma’s locations here, on their website. The atmosphere at Kuma’s is perfect for date night or a dinner out with friends. You can order online for delivery as well!

RACHEL HOOVLER & DEAN’S TEAM CHICAGO

Who doesn’t want to score a great deal on a home? Getting a fabulous property for the lowest price possible is one of the primary goals of buyers and their agents.

One potential way to get a good deal is by considering the potential of a HUD home, which is a property that’s owned by the U.S. Department of Housing and Urban Development. But before making any final decisions, it’s critical to explore what the process of buying a HUD property is like, as it is different from purchasing a typical home. As such, you’ll want to know what these differences are before you buy.

Considering they’re foreclosures, it’s common to perceive HUD homes as those that require a lot of work to bring them back up to par. While this is certainly true for many HUD homes, there are still plenty others that don’t necessarily need much TLC. In fact, about 30% of all HUD homes are move-in ready, with another 30% to 40% needing just a minimal amount of work to update.

But while HUD homes can be solid purchases, it’s wise for buyers to approach the process with caution and get well acquainted with the potential risks. Considering the magnitude of such a purchase, it needs to be approached very carefully.

What Exactly is a HUD Home?

While these homes are owned by the government, they weren’t always. In fact, they’re properties that were previously owned by homeowners who financed the purchase using an FHA-backed mortgage. These types of home loans are generally easier to qualify for compared to conventional mortgages mainly because the required down payment amount is lower.

These homes end up in the hands of the federal government when homeowners default on their mortgages and the homes wind up in foreclosure. When HUD takes over the home, its goal is to sell it in order to recoup its money.

What Advantages Do HUD Homes Offer Buyers?

The biggest benefit to buyers when it comes to purchasing a HUD home is that they’re priced to sell and therefore come with a cheaper price tag compared to a conventional home. Neither banks nor the government are interested in hanging onto foreclosed homes longer than they have to. That’s precisely why they’re generally offered at good prices to attract buyers and get them off their hands.

In addition to a cheaper listing price, the HUD also offers incentives to attract buyers. For starters, buyers may be able to take advantage of certain allowances to cover closing costs or repairs. The HUD may pay as much as 3% of the closing costs, though this number needs to be negotiated when bidding on the home. HUD will also cover the escrow fee, which can save buyers hundreds of dollars at the end of the day.

Another perk goes to buyers who are owner occupants, as they are favored over investors, which can come in handy in the middle of a bidding war. And those who work as community employees – including emergency personnel, police offers, teachers, and so forth – can take advantage of a major bonus: those within this category who plan to live in the home for a minimum of 3 years can get as much as a 50% discount on the purchase price through the “Good Neighbor” program.

Potential Drawbacks of Buying a HUD Home

While there can be significant cost savings when it comes to buying a HUD home, there are certain disadvantages to be aware of as well.

These homes are typically sold for less simply because of the assumption of more risk, as these sales don’t come with any type of warranty. When these homes are visually inspected by buyers, the water and utilities are typically shut off, which can make it more difficult to accurately assess the condition and functionality of a home. It’s possible for issues to be discovered after the buyer moves in and turns on all the lights and taps.

That’s why it’s important to ensure that a home inspection clause is inserted into a purchase agreement to provide the opportunity to uncover any potential issues that would warrant a dead deal. It’s also recommended that buyers bring in government inspectors to ensure that there aren’t any code violations with the structure. If issues aren’t discovered before the contract becomes binding, buyers could be left with a money pit that could cost them dearly. It’s not uncommon for buyers to actually come out the other end having spent more money than they had originally intended to simply because they were unfamiliar with the process. 

The Bottom Line

The process of buying a HUD home is not that easy, and as such, it’s not a transaction that you want to tackle on your own. Having a real estate professional who’s well versed in purchasing HUD homes will prove to be extremely helpful in ensuring that you get a good deal while navigating the entire transaction seamlessly with minimal hiccups.

The key to a successful HUD purchase is to fully understand all the ins and outs that come with such a transaction and what the requirements are before putting in a sizeable offer.

Imagine being mortgage-free or having access to tax-free money that can be used to cover any one of life’s major expenses?

For eligible American homeowners aged 62 years or older, this can be a reality thanks to Home Equity Conversion Mortgages (HECM’s). Backed by the Federal Housing Administration (FHA), these reverse mortgage programs enable seniors to take out some of the equity in their homes and even choose how they withdraw the money.

For those who are comfortably able to make their mortgage payments and have other assets and equity, a reverse mortgage might not make a lot of sense. But for those who are strapped for cash and have plenty of equity in their homes, an HECM can help them access otherwise unavailable money that can be used as they see fit.

What Exactly is an HECM Reverse Mortgage?

This reverse mortgage program is a specialized type of home loan that allows eligible candidates to convert a portion of the equity in their homes into liquid cash. Any equity that has been built up during the years of ownership can then be paid out to the borrower and be used in a variety of ways, including purchasing a primary home.

The difference between an FHA-backed HECM and a typical home equity loan is that the HECM loan doesn’t have to be paid back until the borrower is either unable to meet the criteria for the program or the home is no longer considered the borrower’s principal residence. 

As long as the borrower lives in the home, the majority of the loan proceeds will typically be paid out over time instead of upfront, and with no repayment obligations. Any upfront costs of an HECM – including origination fees, appraisal fees, and title insurance – are typically included in the mortgage with no cash expenditures required from the borrower.

The lender involved pays the borrower, and the reverse mortgage balance increases while accruing interest and fees. Lenders are paid back when the borrower either sells the home or dies. The FHA pays the lender the difference if the sale price of the home is less than the loan amount.

Eligibility Requirements For HECM Approval

Age is not the only requirement needed to qualify for approval for an HECM reverse mortgage program. In addition to being aged 62 or older, homeowners must outright own their homes or be very close to fully paying off their mortgages which can be paid off with the proceeds from the reverse mortgage.

Since the home will still be subject to property taxes and insurance, among other things, candidates must also have the financial means to comfortably cover ongoing expenses. Last but not least, the home in question must be deemed the borrower’s primary residence.

As far as the home is concerned, it must be a single family home or a property with between two to four units, one of which must be occupied by the borrower. Manufactured homes that meet FHA requirements and condos that are HUD-approved also qualify.

Payout Options From an HECM Reverse Mortgage

There are various ways that borrowers can get paid out with an HECM, including the following:

• Lump sum payment at mortgage closing
• Equal monthly payments
• Line of credit
• A combination of the above three

What Happens When the Borrower Sells the Home or Passes Away?

If the home is sold or is no longer being used as a primary residence, the money and interest will have to be repaid. The borrower’s estate or spouse will receive the equity in the home if the borrower dies or sells the property. The equity is calculated using the net property value after all transaction costs have been deducted, minus the balance remaining on the HECM.

The borrower’s estate can obtain title to the home after the borrower passes away by paying off the HECM debt. If the property value exceeds the balance remaining on the debt, there are no issues that need to be dealt with. On the other hand, if the property value does not cover the debt balance, it’s up to the estate to assume this debt or not.

Is There a Risk of Losing the Home Under an HECM Reverse Mortgage?

Thanks to recent regulatory changes made by the U.S. Department of Housing and Urban Development (HUD), HECM reverse mortgages come with more safety measures today than they did in the past. HECM reverse mortgages give seniors the opportunity to tap into a part of their home equity to get rid of their monthly mortgage payments and use tax-free funds without having to use other retirement resources.

The only risk associated with a reverse mortgage has to do with the borrower being unable to meet their contract’s obligations, which is no different than a typical mortgage. If there are any defaults on specific obligations, such as paying property taxes and insurance, the borrower will be considered in default and could have their house placed under foreclosure. But at the end of the day, borrowers have total control over any risks assumed with an HECM.

The Bottom Line

Reverse mortgages are not for everyone, but for specific individuals, they can prove to be very valuable. Seniors who are sitting on a lot of home equity and are receiving a very small monthly income may find an HECM reverse mortgage very helpful at freeing up money that they otherwise wouldn’t have to continue living a comfortable life in their Golden Years.

Always on the hunt for a new Asian restaurant, last week took me to Little Wok. Located at 3144 N. Broadway St., this intimate spot is perfect for date night. The menu is gigantic, with both a Chinese and Japanese section.  My date loves spicy food, so he ordered the Hot Pepper Chicken, hoping it would be the spiciest thing on the menu. While not as fiery as he would have liked, the sauce was very tasty and the chicken was crispy. We also ordered the Chicken Fried Rice. It was a solid dish, but not very unique. I probably wouldn’t order this in the future.  The portions are huge and we definitely ended up with more food than we could eat. My date is not a sushi fan, but I can’t get enough of it! I ordered two rolls for myself, perfect for being able to finish my meal, while still snagging bites of the rice and chicken dishes. My first roll was the Tiger, stuffed with tuna, salmon, avocado, and topped with eel and crunchy eel sauce. The roll was packed with fish and the sauce was flavorful without being overwhelming. My second roll was the Spicy Tuna roll. This roll was very simple, but delicious.

The atmosphere is modern and sleek, without feeling stuffy. Hours are Mondays through Thursdays from 11:30 am to 10 pm, Fridays and Saturdays from 11:30 am to 11 pm, and Sundays from 12 pm to 10 pm. They have a number of lunch specials, available from 11:30 am to 3 pm. You can order online for pickup and delivery as well. Check it out here!

RACHEL HOOVLER & DEAN’S TEAM CHICAGO