0
0
0

How Does Financing Vary by Suburb/Neighborhood?

by Chicago Agent

Since the beginning of 2012, financing has primarily been conventional for both the suburbs and the Chicago neighborhoods, at 42 percent and 45 percent, respectively. There is a substantial difference (8 percent) between the percent of government programs that finance each, with 20 percent of government programs for suburban listings and 12 percent financing Chicago neighborhood listings.

As for which neighborhoods and suburbs have the most of which types of loans percentage-wise, those numbers are in bold below. Interestingly enough, there are a few areas in which cash or government programs are the majority of a region’s financing. Note: the government programs category includes FHA, FHA 203k and VA financing, and LeapRE pulled data from areas that have had at least 600 closings.

 

 

Leap Real Estate Systems is the leading provider of online solutions for Chicagoland’s progressive agents. With over 20 years of software development experience and a keen understanding of the real estate industry through analytics, our mission is to create innovative products that improve seller communication and encourage data-driven decision making. For more information on our company and services, visit www.LeapRE.com.

Read More Related to This Post

Comments

  • Dave Hanna says:

    Well, I thought we had done away with redlining, but no worries, it is alive and well and apparently, legal.

  • Lyn Sims says:

    Has nothing to do with redlining. Most condos in the city have now lost their FHA approval or have high rental ratios or past due assn. fees. THAT’S THE REAL PROBLEM THERE AREN’T MORE FHA DEALS.

    Last year I did a post about what percentage of loans were done in just the Schaumburg area thinking that FHA would be the one most used because buyers have little money down. I was WRONG, that’s for sure. CONV is still the most used financing with CASH as the runner up. Go figure. I’m sure that checking out your own areas financing types would be an eye opener. Could also get you more potential business from knowing it. Work with a good loan officer that can offer buyers many different programs.

  • Lyn Sims says:

    Whoops, forgot to add who added the ‘OTHER’ category? What would that be? THERE IS NO ‘OTHER’. That is totally unknown & I can tell a non-agent did this survey or compiled it. You have conventional,cash,FHA,VA and nothing else guys.

  • Lester S "Lester the Lister" says:

    “OTHER” financing may include a variety of seller financed contracts.

  • Elias Cooper says:

    Thanks for your feedback all.

    One quick clarification is that our data is sourced from the MLS and not an external survey. Also note that the category title is “other/unspecified” not just “other”. This is a broad category of a few miscellaneous entries that don’t group nicely (some of which Lester pointed out) as well as some closed listings where the financing type was not available in the data. As this was generally a small percentage in every market analyzed we grouped them for simplicity.

    As far as redlining we won’t speak to that other than to say that different properties, as Lynn pointed out, are likely eligible for different financing options. We may run a separate pull to look deeper at these trends. Feel free to email us ideas.

Join the conversation

New Subscribe

  • This field is for validation purposes and should be left unchanged.