Category ArchiveChicago Mortgage

chicago-condos & Chicago Real Estate & Chicago Homes & Chicago Mortgage pcherry on 06 Nov 2009

Fannie Mae Offers Deed For Lease Program

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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chicago-condos & Chicago Real Estate & Chicago Mortgage pcherry on 05 Nov 2009

Revisions And Delays To New FHA Condo Rules

November 5, 2009 - There is at least a little good news for Chicago condo buyers. Back in the summer, FHA stated that they were changing the rules on their approval process for new Chicago real estate developments with condos. The new rules would have gone into effect on October 1st of this year. FHA had then pushed the changed back to November 2nd and now has announced that it will be December 7th before they go into effect. Also, according to an Inman news release, some of those new rules regarding approval will not be as limiting as they first announced.

FHA had planned to cut down on the amount of approved condos loans in any one building. They would go down from 50% to only 30% of the total. But they have decided to reverse that decision and will keep on approving as many as 50% of the loans in a building and if the building is “well established” FHA could back 100% of the units with at least a 10% reserve. However, the rule that 50% of the condos in a building have to be owner-occupied still applies.

Another new rule that would have gone into effect was that all FHA approved condo buildings would have to be re-certified once every two years. That rule alone could have potentially drastically slowed down or even completely derailed many condos sales because of the extended wait period. But FHA amended that change to state that condo buildings that have already been approved will not have to be re-certified.

More developers are applying for FHA approval in an effort to make it easier for buyers to get financing, so this has to be good news for them. The list of Condos In Chicago that are already FHA approved keeps getting longer, so buyers have a pretty good choice of units available.

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chicago-condos & Chicago Real Estate & Chicago Mortgage pcherry on 05 Oct 2009

Lock In Low Interest Rates At CA23

October 5, 2009 - More Chicago real estate developers are either teaming up with lenders to offer mortgages at reduced rates or making the offer on their own to boost condo sales. The Brixton Group is one of those developers taking the initiative and right now they are partnering with MB Financial Bank and advertising 95% LTV financing at CA23 for buyers who qualify.

MB has been offering interest rates of as low as 3.875% on 30 year loans with a 20% down payment and 4.375% on 30 year mortgages with a 5% down payment.

CA23 is located on 23 North Aberdeen in the West Loop and will have a total of 48 condos with two to four bedroom layouts. Phase one is nearly sold out, but there are still a few units available. Prices on these condos run from the mid $640,000s and can exceed $1.45 million.

Unit features include hardwood flooring, carpeted bedrooms and natural stone in the kitchen and baths. TGI Premiere cabinets with stone counter and vanity tops, Fisher & Paykel appliances and Grohe and Toto faucets and fixtures are installed. Kitchens come with a stainless steel sink and baths have a white porcelain sink.

Ceiling heights at the CA23 condos are pretty impressive, ranging from 11′ to 22′. The units measure from around 1,900 to 4,000 square feet. Another unique feature is that every condo has private elevator access.

If you’re worried about financing, you may want to check out what CA23 has to offer. And you also may want to check into the growing number of Condos In Chicago that have gotten FHA approval, which would mean a low down payment and interest rate if you qualify.

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