December 4, 2009 – Since we told you about the possible changes coming to FHA mortgages, we thought we’d highlight a few Chicago real estate developments that are already FHA approved. This might help you in your search for Chicago condos before those low 3.5% down payments hike up to 5% next year.

If you’ve missed out on all the Motor Row Loft auction mania, there are still a couple of loft developments in the city that are FHA approved and have units still available. Chess Lofts on 320 East 21st Street still has some one bedroom condos that run from the $170,000 to $320,000 range. The two bedroom units at Chess Lofts are currently listed between the $240,000 and $320,000 range. There are a total of 119 units in this pet-friendly conversion building.

Another loft development that is FHA approved is Prairie District Lofts, located on 1727 South Indiana. About a month ago the developer lowered prices here by around 25%. The 116 units in this conversion project have traditional exposed wood beams, brick, 12′ to 20′ high ceilings, large windows and fireplaces. Prices are running between the $190,000s and $350,000s for one bedrooms. Two bedroom lofts here will cost you between the $240,000s and $390,000s. And a three bedroom loft runs from $370,000s to $420,000s.

There are more Chicago Lofts that are FHA approved, so check out the profiles in the development pages.

[tags]Prairie District Lofts, Chicago Condos, Chicago Real Estate[/tags]

December 3, 2009 – If you’ve been shopping for Chicago condos that are FHA approved, you may want to pay attention to the changes in their mortgage requirements that could be coming soon. These possible upcoming changes are in response to the rapidly increasing amount of FHA loans that have potentially stretched the administration a little thin and an effort to minimize the risk of buyers defaulting on loans.

According to an article in the Tribune, Shaun Donovan who is the Housing and Urban Development Secretary said, “We have made the decision to exercise our authority to increase the up-front cash that a borrower has to bring to the table in an FHA-backed loan to make sure that FHA borrowers have more “skin in the game” and a stronger equity position in their loans.”

The nitty gritty of the impending FHA mortgage requirement changes will be made public in January. Besides the increase in down payment, which is currently 3.5%, a higher credit score is also expected to be mandatory.

Other upcoming changes to FHA mortgages may include a rate hike in the annual mortgage insurance premium and that sellers will only be able to offer buyers help with 3% of the closing costs instead of the current 6% limit.

With FHA insuring nearly 30% of home loans and 20% of mortgage refinances, these changes could have a big impact on Chicago real estate sales. Over 75% of all first time home buyers now opt for FHA backed mortgages, so it probably won’t take long to see what sort of effect this has on sales of Chicago New Construction Condos.

[tags]FHA Mortgage Requirements, Chicago Condos, Chicago Real Estate[/tags]

December 2, 2009 – A couple of posts ago we told you that Chicago Spire developer Garrett Kelleher was once again meeting with the AFL-CIO to discuss possible ways to restart work on the 150 story tower. According to a press release from NBC Chicago, those talks on Monday didn’t end in an agreement but both parties plans to continue communicating about the possible deal.

President of the Chicago and Cook County Building and Construction Trades Council Tom Villanova was quoted as saying that, “An agreement hasn’t yet been made, but talks will continue.” He also added that, “There is no time frame set.”

The main hurdle is the $170 million combined total needed to cover what is owed to the Anglo Irish Bank and pay down a number of liens placed against the Chicago real estate project, including an $11.3 million lien placed by architect Santiago Calatrava.

In a recent Tribune article about the meetings, it was stated that Mr. Kelleher and Shelbourne Development members ad been making the rounds of construction trades and union halls to bolster support for the project. If a deal is reached, one of the stipulations would be that all work done on the high-rise would be carried out by only union members.

With such a hefty price tag for just getting the Spire out of debt, the AFL-CIO apparently wants more time to decide on whether or not to invest that much in one project. The article states that the organization has three investment funds, including the Building Investment Trust. That one is currently tied in with the Lakeshore East towers and The Shorham. And buyer’s appetites for Chicago Luxury Condos would have to return to generate more sales for this project as well.

[tags]Chicago Spire, Chicago Condos, Chicago Real Estate[/tags]

December 1, 2009 – As if there weren’t already plenty of rental Chicago real estate projects in the works, we have news that a new apartment tower may be going up in the West Loop. Apparently plans for a high-rise on 108 North Jefferson have been in the works for more than a year, but the project is far enough along now that it is going up for approval from the Chicago Plan Commission.

The apartment tower was originally designed to be 41 stories tall but has since been downsized to 34. The number of apartments was scaled back that much. There were to be 311 and now 304 are planned. Along with that, there will be indoor parking, some ground level retail, 9,200 square feet of green space on the roof and the development intends to gain LEED certification, according to the Chicago Architecture blog.

With developers still focusing more on apartments than Chicago Condos , anyone looking to rent has a huge amount of options right now. And there are also condo projects that have switched to rental, such as Lofts at Roosevelt Place and some like Trio and Mondial that may also go that route. And there are also quite a few apartments still available for lease at Aqua.

[tags]Chicago Apartments, Chicago Condos, Chicago Real Estate[/tags]