January 15, 2014

All About Chicago Mortgages

Obtaining a mortgage approval in Chicago can be a complicated process. There are many issues that are local to the Chicago market that out of town mortgage lenders may not be familiar with or could overlook. For example, did you know that the city of Chicago charges transfer tax stamps of $7.5 per every thousand dollars of purchase price? So, on the sale of a $400,000 condo in Chicago, the buyer will be charged $3,000 in transfer tax alone. This does not even include the seller’s portion.

In addition, there are issues pertaining to condo lending in Chicago where it is very important to speak with a local lending expert. For instance, does the condominium you are purchasing have a high concentration of investor units? If it does, you may run into financing issues as many lenders shy away from builders with a lot of renters.

Chicago mortgage loans have a conforming loan limit of $453,100 (2018). Conforming loans are typically underwritten to the guidelines established by Fannie Mae and Freddie Mac, the government sponsored enterprises you have undoubtedly read about over the last several years. Fannie Mae and Freddie Mac will purchase Chicago mortgages at higher loan limits for 2 to 4 unit properties.

If you are in need of a free Rate and Payment quote for a Chicago mortgage program, please contact United Home Loans below or at 708-531-8388.

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