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.

Technorati Tags: FHA Mortgage Requirements, Chicago Condos, Chicago Real Estate

October 6, 2009 - We’ve told you about a couple of Chicago real estate developments where MB Financial is offering deals on financing, including CA23 and SoNo. Another development where MB is trying to generate sales is at Silver Tower on 303 West Ohio Street in River North.

You can lock in a 4.375% fixed interest rate on a 30 year mortgage with just a 5% down payment and don’t have to have mortgage insurance on the loan. This offer from MB Financial is only good until October 15th.

The 40 story Silver Tower has a selection of one to three bedroom Chicago condos for sale with prices starting in the $240,000s. Dens are optional. The units have a balcony or terrace, floor-to-ceiling windows, oak floors, wall-to-wall carpeting in the bedrooms, cherry or maple wood cabinets and stainless steel Kitchen Aid appliances. The kitchens also have a double stainless steel sink and granite counter tops. Baths come with marble flooring and vanity tops plus glass shower surround and separate soaker tub.

The Sky Lobby has a 24 hour fitness center and landscaped patio with garden. There is also a 24 hour doorman at Silver Tower, bike room, storage lockers and the tower is pet-friendly.

With the deadline to lock in MB’s loan rates just over a week away, you may need to act quickly if you’re interested. And remember that there are other Chicago Condos in River North that may interest you as well.

Technorati Tags: Silver Tower, Chicago Condos, Chicago Real Estate

May 21, 2008 Renaissance Lofts, a Kopley Group Chicago loft development at 1791 Howard Street, is featuring a two year, no questions asked, money back guarantee to buyers.

Finally… A Developer Who Puts His Money Where His Mouth is…

We spoke with Nick Copley last week. He’s determined to prove that Renaissance Lofts is the best Chicago loft that money can buy, so he’s offering what appears to be Chicago’s only unconditional money back guarantee on a Condo development.

“If in two years you don’t still love your loft. The Kopley Group will buy it back from you with no questions asked.”

We’re wondering… will other Chicago Condo developers will step up to the plate and offer hesitant buyers this kind of guarantee?
We’ll update you soon about the effect on sales…

Technorati Tags: Rogers Park, Chicago Lofts, Chicago Real Estate