Wednesday, May 17, 2006

City of Chicago "City Mortgage" Program

"City Mortgage" is back, aimed at Chicago buyers on a budget.Every tick up in
interest rates holds more families back from affording a home. Because of recent rate rises, the Chicago housing department is again sponsoring City Mortgage. A fixed-rate, 30-year loan at a competitive rate, the City Mortgage also provides up to 4 percent in closing costs for eligible borrowers.You'll have to fall under certain income levels, and buy a one- to four-unit home in Chicago under a certain price to qualify for the loan. The limits increase slightly for properties in "target" areas where the city wants to promote development.To get a City Mortgage, you have to apply through one of the participating lenders to be posted on the city Web site, (Click on Home & Property; next, click on For HomeBuyers; then Housing; and Financial Assistance on upper-left side.)

Lenders should start offering the City Mortgage this month (May '06), says Molly Sullivan, housing department spokeswoman.- Advantage: New research shows Chicago's dominance over the regional housing market is growing. Not only is the city attracting more buyers, but fewer owners are losing their homes to foreclosure.

For a complete look at this article written in the Chicago Tribune go here

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