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Two excellent ways to become a New Homeowner in West Humboldt Park

As described in our website, there are more than 10 reasons to feel good about West Humboldt Park in 2010. Included is the exciting opportunity to become a homeowner in a neighborhood located less than 7 miles from the loop, convenient to transportation to the downtown and elsewhere, and blessed with two beautiful parks.

There are two very attractive ways to become a new homeowner in WHP. If you are a first-time homebuyer, for instance, and want to buy a brand new affordable home, the First Community Land Trust of Chicago offers newly constructed homes for buyers who earn 60% or less of the Metropolitan Median Income.  A family of four, for example, would earn as little as $37,700 per year. If you are willing to rehab a foreclosed home, you can purchase such a home, and obtain a rehab loan, from the Neighborhood Housing Services. Whether you wish to buy a brand new home or a foreclosed home, you must be able to pass a credit test.

The First Community Land Trust of Chicago uses an innovative model to help new homeowners buy at affordable rates. The land trust owns the land and the homebuyer purchases only the home.  This saves the homeowner the cost of the land and also assures affordability into the future.  Homebuyers obtain a beautiful brand new home costing about $225,000 to build.  Subsidies of up to $71,000 from the Illinois Housing Development Authority (IHDA) and Chicago Department of Housing are available to qualified buyers. With a down payment of $2,500-$3,000 you can be in your new home. A typical mortgage is just between $89,000-105,800.   

But living in a new home is not the only advantage of buying a land trust home. Owners are highly encouraged (even helped) to participate in the Individual Development Account (IDA) program, join a block club, and work in a variety of other programs to improve the quality of life for themselves and for their family and neighbors.  The IDA program offers the homeowner the opportunity to save up to $2,000 and receive a match of $4,000. The total of $6,000 can be used to go to college or receive technical training, start a business, or improve their home.

These homes are 3-bedroom, 1 3/4 bath with over 1,900 square feet and a spacious open floor plan. Buyers of land trust homes get loan pre-qualification and homebuyer counseling through Neighborhood Housing Services of Chicago (NHS), free buyer legal advice, and post-purchase support. 

If you are interested in purchasing a foreclosed home and rehabbing it Neighborhood Housing Services of Chicago (NHS) offers a Purchase and Rehab Loan Program. This program will give buyers the opportunity to purchase a foreclosed home in West Humboldt Park and also provides an additional rehab loan for construction work along with technical assistance and support from NHS.  NHS can empower you with critical information and support to make the purchase and rehab move smoothly and help minimize risk. 

This program requires a minimal down payment of 1-5% of the purchase price. A 30-year fixed-rate first mortgage for 80% of the total project cost (purchase price plus rehab, closing and soft costs).  An additional "Gap" Loan is provided at the same rate as the first mortgage so borrowers can have a smaller down payment and do not have to purchase Private Mortgage Insurance.  This program is for owner occupied properties and can include 2- to 4-unit properties. Borrowers get the advantage of NHS's 4-class Home Ownership Education program. Licensed, insured contractors must perform all rehabilitation work, and an NHS Construction Specialist will be assigned to your project to guide you through the construction process. 

Both of the above programs are great ways to purchase a home in West Humboldt Park and take part in the renaissance of this community.  For additional information on either of these programs please contact the First Community Land Trust of Chicago at (773) 342-0036 or Neighborhood Housing Services at (773) 533-5570. 

Keywords: Foreclosure, Housing, Land Trust

Posted in Housing