Getting Back to Basics
by: Laura Beth Vinson
June is National Homeownership Month. The theme this year is Back to Basics, centered
around the idea that "uncertainties in the
housing market require back-to-basics solutions that break the cycle of foreclosure and
add clarity to the homebuying process," states Federal Housing Commissioner, Brian
Montgomery. "FHA has always been about the basics: verifying borrower's income, ensuring their loan is affordable and helping them stay
in their homes."
The City of Chicago's Department of Housing
(DOH) will celebrate the event by staffing a
Homeownership Information Booth in the lobby of City Hall, 121 N. LaSalle Street, from 9 a.m. to 2 p.m. June 9-15th. Staff will provide information and discuss homeownership options with potential homebuyers.
The City of Chicago offers a number of options
and initiatives for first-time buyers, including
mortgages and homeownership counseling
services. The City's homeownership programs include:
TaxSmart Mortgage
provides a federal income tax credit to qualified first-time homebuyers of single-family homes, condominiums, townhomes and owner-occupied buildings with four or fewer units. The credit is equal to 20 percent of the amount of interest paid on the mortgage
each year.
New Homes for Chicago
provides new construction single-family and two-flats at affordable prices. Depending on income, the buyer
may also be eligible for up to $40,000 in
purchase price assistance. Over 2,100 new homes have been built or are in marketing/construction through New Homes for Chicago since the program's inception in 1990.
CPAN
enables homebuyers to purchase affordable condominiums or townhouses in market-rate developments. The initiative offers below market prices and up to $30,000 in purchase price assistance to qualified buyers.
Housing Counseling Services
help create more successful homeowners. Prospective
homeowners meet one on one with a counselor to discuss the criteria for buying a home, review mortgage products, budget and overall credit history information, steps to buying a home, closing and post closing information and more.
Chicago Community Land Trust (CCLT)
helps preserve the long-term affordability of homes created through City programs. Under the CCLT initiative, housing units are sold at affordable prices, even though their market value is considerably higher. Subsidies used to make a home affordable for the first buyer stay with the home to keep it affordable for the next buyer.
For more information, visit the City of Chicago's Department of Housing website.