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I'm currently looking to purchase my first home/apartment in Chicago and I'm curious. I know that the State of Illinois and the Fed's provide "grants" of such to first time home buyers. I've asked my local lending group about it and they recommended that I do use them due to the unattractive rates. Is this correct? I have enough for a 20% downpayment.
First-time buyer programs that do not require down payment tend to have rates as much as a full %-point higher than if you even put as little as 3% down, which can be gifted to you.
I'm not saying spend all your savings on a 20% down payment. I would suggest looking into HomeReady/Home Possible, going with a 3-5% down payment, and trying to negotiate such that the seller pays your closing costs, taxes and insurance due at closing. That way you can retain savings.
But check it out quickly, as HomeReady, and likely Home Possible, are about to significantly reduce the income that they allow borrowers to have, in order to use those programs.
I'm currently looking to purchase my first home/apartment in Chicago and I'm curious. I know that the State of Illinois and the Fed's provide "grants" of such to first time home buyers. I've asked my local lending group about it and they recommended that I do use them due to the unattractive rates. Is this correct? I have enough for a 20% downpayment.
First time homeowner grants are for people who can not afford to put down 20%.
You should take a first time homeowner free workshop if you don't know about buying or getting a mortgage. and you don't purchase an apartment you buy a condo unit.
What's a lending group? Do they offer 30 years mortgages?
You should take a first time homeowner free workshop if you don't know about buying or getting a mortgage. and you don't purchase an apartment you buy a condo unit.
What's a lending group? Do they offer 30 years mortgages?
Sorry meant a lender not a group. Yes they are offering 30 year mortgages. I thought the grants would be given if you apply for a conventional loan while retaining their rates. I guess not.
Sorry meant a lender not a group. Yes they are offering 30 year mortgages. I thought the grants would be given if you apply for a conventional loan while retaining their rates. I guess not.
You might qualify depending on your income, but those programs are usually for down payment or closing cost assistance. If they only give you 3% you are going to have to get mortgage insurance, it's better to just get a low rate and put 20% down and not use them.
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