The Chicago Tribune reported on Sunday that the abundance of unsold Chicago condominiums has realtors scrambling to receive FHA approval. The sheer amount of unsold condos can be linked to the current economic status, which includes a jobless rate of over 10% in the city. To combat this, “an increasing number [of developers] are applying to have their developments approved by the Federal Housing Administration.”
New West Realty is ahead of the curve in this respect, as both Eastgate Village and 1555 Wabash have already received FHA approval. To get a perspective from a developer with FHA approval in hand, the Tribune met with Terrie Whittaker, Sales and Marketing President at New West Realty. Whittaker noted how, in the past, most developers would not seek FHA approval. But over the past few months the Federal Housing Administration has gained immense importance in the home buying process. From the Tribune:
“‘Now we care deeply and passionately [about FHA approval],” Whittaker said. “I care about anything that will help me sell a condo. I still have 47 or 46 percent of the building to sell.’
With the approval in its pocket, New West started closing on units last week.
One of the building’s future residents is Zaneta Howard, a recent transplant from Philadelphia who has been shopping for a Chicago condo since October. While sales agents in new buildings said “we can make anything work,” she often found the final offers weren’t as compelling as she’d hoped. Her real estate agent then helped her look for FHA-approved buildings.”
To qualify for FHA-backed mortgages, a building needs to have at least 51% of its units sold. A very important reason for homeowners to find FHA-approved developments is because the down payment on the home is now as low as 3.5% of the purchase price.* And with the $8,000 tax credit given to first-time home buyers, the burden of financing a home is significantly lessened.**
The $8,000 tax credit is only available until December 1st of this year, so time is running out to take advantage of the offer. Eastgate Village has FHA approval and townhome and condominium options for you! For more information and to schedule a showing, click here. The time has never been better to own a new home!
To read the full Chicago Tribune article, click here.
