There is lots of fiction and myth surrounding the best deals on lofts and the difficulty in obtaining mortgage financing.   When it comes to Chicago loft financing, the truly great deals are very simple to finance.

Let’s begin first with where the myths are coming from.  There are a few listings at costs that are too good to be true that cannot be financed.   The seemingly logical conclusion is that it is hard to obtain a home loan approval in today’s market place.  Nothing could be farther from the truth.

The reality of it’s that the “best deals” inside the condo and loft market place right now are merely not beneficial deals.  They’re just low prices and they are possibly risky purchases.  If I was buying a loft in Chicago currently, I’d have five questions that I’d use to determine if the  property can be a safe buy.  Here would be my large five:

   1. Is this building predominantly owner-occupied or does it contain lots of rental units?
   2. Is there a large single-investor holding extra than 10% of the units?
   3. What percentage of the unit owners are past-due on their assessments?
   4. Are there pending special assessments or legal actions against the association?
   5. Does the homeowners association have adequate reserves to cover general maintenance?

If you look solely at today’s home prices versus the costs from a few years ago, you can find some properties that seem like amazing values.  For several of them, they’ll fail a single one of those big five tests.    Failing any, let alone more than one, can mean that values in that building are likely to fall even further.  In a market where house prices are stabilized and now rising, there is no reason to take an unnecessary risk.

Buying a loft in Chicago can be a great investment if you buy in the right building.  Chicago mortgage rates remain low and there are still quite a few great loan programs.

Search Chicago Lofts now.

Prepaid Lawyer

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