Chicago Condo Directory

May 7, 2010 - Even though right now just about the only way you can get a mortgage with a low down payment is if it is backed by FHA. A rapidly increasing number of buyers, especially first-time buyers, count on the 3.5% down payment that an FHA backed loan can have. There have been the rare occasions when a buyer could find another private lender offering a down payment of less than 5%, but those days may soon be over.

According to a report in the Wall Street Journal, some members of Congress are pushing to pass a law mandating that all private lenders require at least a 5% down payment from borrowers. The FHA and any other government agancy would be exempt from this new law if it passes.

The article also went on to state that the National Association of Realtors isn’t in favor of this proposed legislation. The NAR claims that around 11% of all home buyers as well as about 18% of all first-time home buyers locked in down payments that were 5% or less this past year and that passing this law could potentially knock some buyers out of the market.

FHA loans have certainly enabled many buyers to own a Chicago condo, but giving only that agency the right to offer the lowest down payments could hurt sales of Chicago real estate in the long run.

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December 1, 2009 - It was only a week or so ago that we told you about Aqua having trouble with getting Fannie Mae approval for condo mortgages. The issue stemmed from the ratio of commercial versus residential space in this Chicago real estate development. It seems the percentage tips too much towards commercial with the hotel space, albeit unoccupied, and the 474 apartments, with 313 of those already rented. The 264 condos in Aqua are practically all sold out, but the equation doesn’t sit well with Fannie Mae.

To solve the problem at least temporarily, Magellan Development Group has announced that they have found a couple of lenders who will step up and provide nearly full financing for condo buyers. Magellan stated that letters with details about those lenders were sent to the buyers who have purchased through floor 69. Evidentially that is the highest floor currently ready for closings and occupancy at the moment.

Those two financial institutions are Harris Bank and MB Financial Bank. MB has been involved in special rate mortgages in other developments such as SoNo.

If no lenders were found would were willing to offer 90% or more financing, it could have possibly delayed some buyers from closing or completely prevented some sales from going through. With so much pricing competition among Condos In Chicago, developers need to make the most of every opportunity to make a sale and also to close it.

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November 6, 2009 - Fannie Mae is evidentially wanting to generate some income from all the condo and home owners who are heading for foreclosure and for whatever reason aren’t able to qualify for any mortgage modification. The new program being launched is called Deed For Lease. As the name implies, a homeowner facing foreclosure who surrenders the deed to their mortgage holder will be able to lease back the condo or house at market rate and not have to move, according to a recent press release from Fannie Mae. This allows the former homeowner to avoid the foreclosure on their record and be able to stay in the home.

In order to qualify for the Deed For Lease program, a homeowner or borrower has to be actually living in the foreclosed house and it be their primary home. There can’t be any other mortgages or liens filed on the home or condo either. And even tenants (someone renting the home from the owner) may also be able to qualify for the deal. In any case, you have to have proof that whatever the current market rate rent on the condo or house doesn’t exceed 31% of your gross income.

The leases will be available for up to 12 month periods. After that, you may be eligible for another 12 month renewal or get a month over month extension on the lease. And if the foreclosed condo or house is sold before the lease is up, the new buyer has to honor the terms. But after that lease is up, you’ll have to negotiate with the new owner, who could possibly not be interested in renewing your lease.

If that all sounds too complicated or you aren’t in danger of foreclosure and are just looking for a place to rent, there are lots of New Chicago Condos for rent or with rent-to-own programs being offered right now.

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