Great Question ... Your lender can offer Lender Credit to cover most of closing costs ...

There are 704 HUD FORECLOSURES in the Greater Chicago Area: see http://www.homepath.com

Read my other post below for more explanation. I looked up Chicago at the website and there were 704 Available homes in the system today.

A hot Just Listed condo for $51,500 with 2 bedrooms. Another one for $27,000 with 2 bedrooms.

And some single family houses (detached houses) from $51,000 to $199,000 and up.

There are a LOT of them at great prices!

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Check out http://www.HOMEPATH.com -- these are HUD FORECLOSURES. This is the Official Fannie Mae website.

Most of the homes on there offer the NEW HomePath Mortgage. Which requires ONLY 3-PERCENT DOWN! No Mortgage Insurance! and up to 6-Percent Closing Costs Credit to the Buyer!

And Primary Resident/First Time Buyers get FIRST DIBS to make their offers ... for about a week before everyone else!

So check them out, then CALL YOUR REALTOR! You cannot make the offer yourself. The new system REQUIRES that you use a Registered Agent.

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Depending on how good your real estate agent is, they could negotiate a closing cost credit from the seller of up to 6% of the purchase price. Last time I checked, it is still a buyer's market.

I am able to give my mortgage clients a closing cost credit. I use this very often to write the loan according to the clients needs. Please feel free to contact me with questions.

Hi Uriel -- I just checked and Homepath currently is not advertising closing cost credit promotions. Homesteps currently is advertising a 3% buyer's closing credit. ( http://www.homesteps.com/ ). You need to be a little lucky to locate the exact property that meets your needs, and have it be a match for one of these programs, though.

IHDA is targeted by areas, so your area of preference might not qualify for funding or incentives. You can review them here : http://www.ihda.org/homeowner/targetedAreas.htm

ChicagoRea.com offers a significant rebate to their buyers, and do not at all discount the service quality provided. We can also negotiate closing cost credits to your lender's maximum.

It all adds up and hopefully helps you attain home ownership!

Please reach out if I can assist further, I would enjoy the opportunity to help you find a home.

Michael

Fannie May offers 3% closing cost assistance on some of their properties through their Home Path program. You can find out more at http://www.homepath.com/incentives.html

Uriel,

There are first time homebuyers programs available thru Illinois Housing Development Authority (IHDA) that give you downpayment and/or closing costs assistance. If you are looking for assistance with closing costs that can also be done thru negotiating with the seller.

I have experience working with first time home buyers and have knowledge on the IHDA programs. If you want more information, please don't hesitate to contact me at my phone/email below.

Thanks and good luck to you in your home search.

Nick Nelson
NMLS #384413
1st Step Mortgage Group
6876 Spring Creek Rd. Suite 124
Rockford, IL. 61114
815-289-0880
nickn@1stepmortgage.com

The ultimate first time buyer program in Chicago is offered by IHDA. You'll have to find a bank/mortgage broker that deals with them, but the program will grant you 3% of your down payment, which makes an FHA loan very very very, and one more VERY cheap.

http://www.ihda.org/homeowner/granthomebuyer.htm

As for closing costs, these can almost always be wrapped into your purchase price. The main caveats are that unless being offered by a foreclosure lender, they are often added to the fair market value of the price, so rather than free money, it's really cheap money that you pay off over 30 years.

And the other caveat is that if you are buying a property near the top of the market values, your additional closing costs that your agent has built into the loan may hurt you during the appraisal as the property may not appraise for this higher than the top value price you are paying.

There is also a man that hangs out near State and Washington, weekdays, by the Old Navy, who seems to always have excess cash to share. Check with him

the best program is called seller concessions that are applied to closing cost of the buyer

Hello Uriel,

Many lenders are now competing to obtain new purchase business. Banks like Chase is offering up to 1,500 dollars in free money if you meet certain standards. The key is to make sure you understand what type of loan you are obtaining and at what cost. Just because it's free doesn't mean it fits your financial needs. Speak with some loan officers in the area you are moving into. Let them know you will be seeing them every time you make a deposit or cash a check. This way they understand that they have a direct impact on the community they serve. Good luck!

There are some programs out there. I would speak with your lender about the options.

Yes there is.

Call me today to discuss or apply online at http://www.AlexanderRomo.com

Your best bet is to meet with a local and trusted loan officer, they can prequailify you and let you know what programs are available to you. After that a good buyer broker can assist you with finding properties and writing offers where the seller credits you with 3 to 6% of closing costs as well

The answer to that questions is, it depends. But yes there are programs out there. Talk to a realtor as they generally are well versed at knowing what's out there and can point you in the right direction.

The answer to that questions is, it depends. But yes there are programs out there. Talk to a realtor as they generally are well versed at knowing what's out there and can point you in the right direction.