First-Time Homebuyers Eligible for 5-Percent Down Payment At One One One Morgan

Winthrop Properties, in cooperation with New Century Bank, is offering first-time homebuyers a special 5-percent down-payment program on condominiums at its West Loop loft development, One One One Morgan.

The 5-percent-down program was designed specifically for first-time homebuyers who can afford monthly mortgage payments but lack the savings for the typical 10-percent to 20-percent down payment, according to Winthrop Properties co-principal Bob Horner.

One One One Morgan, located at Adams and Morgan streets, offers 166 new-construction lofts with one to two bedrooms plus den, one to two baths and 680 to 1,535 square feet. Base prices range from $180,900 to $426,000. Heated, indoor parking costs $25,000 per space. A three-bedroom, 2,376-square-foot duplex penthouse is also available for $726,000.
"Our 5-percent-down program is opening up One One One Morgan to a whole new market segment," Horner said. "We're attracting singles, couples and dual-income households who previously felt precluded from homeownership. Other first-time buyers might have savings that have been eroded by the stock market's performance. Or they might just like the idea of putting less money down and freeing up cash for other things."

To be eligible, first-time homebuyers must be pre-qualified through New Century Bank, although they are not required to secure a mortgage through the bank. No limit is set on the loan amount. Program participants must also pay monthly Private Mortgage Insurance (PMI), a requirement for buyers posting less than a 20-percent down payment.

Once qualified, buyers put down 5-percent of the purchase price as earnest money. This deposit then becomes the down payment. The typical earnest-money requirement for new construction is 10 percent, so the lower requirement offers first-time buyers another advantage, Horner noted.

Several other financial aspects make One One One Morgan attractive to first-time homebuyers. Foremost are interest rates hovering near 30-year lows. This means buyers can afford more home than in recent years. For example, buyers today posting 5-percent down on a $225,000 loft residence would pay $1,350 in monthly principal and interest on a 30-year mortgage at 6.5 percent. Two years ago, when interest rates were two percentage points higher, the same monthly payment with 5-percent down bought an $185,000 residence.

To guard against an up tick in interest rates, New Century Bank qualifies buyers at a slightly higher-than-market rate.
The list of standard features at One One One Morgan also helps keep cash in the pockets of first-time buyers, according Ibrahim Shihadeh, co-principal of Winthrop Properties.

Granite countertops, imported Italian cabinetry, a fireplace and a high-tech structured-wiring package with Internet access are included in the base price of every home, so buyers do not need to spend exorbitantly on upgrades, Shihadeh noted. "This is especially meaningful to first-time buyers because most developers require a portion of the cost of upgrades to be paid in advance. These can become costs that buyers didn't initially consider," he said.

One One One Morgan is currently more than percent sold, and construction is topping off this summer. However, there are still more than 30 floor plans to choose from.

Standard features include private balconies or terraces, 10-foot ceilings, hardwood flooring in living areas and kitchens, carpeting in bedrooms, ventless gas fireplaces, individual heat and air conditioning, and track lighting.

Kitchens have 42-inch upper cabinets, Italian granite countertops, a 21-cubic-foot refrigerator, self-cleaning gas range, microwave and dishwasher.

Baths have ceramic tile flooring, tub and shower surrounds, full-width vanity mirrors, single-lever chrome faucets and 5-foot soaking tubs in master baths.

Building amenities include a 24-hour doorman, individual unit storage, a marble-tiled lobby, high-speed elevators and a high-rise fire protection system.

The sales center for One One One Morgan is located at the southeast corner of Morgan and Jackson, two blocks west of Halsted. It features a decorated kitchen/living room vignette and scale model of the building.

To reach the sales center, take Interstate 90/94 to Adams Street, go west on Adams to Morgan, turn left on Morgan and continue south for one block. Sales hours are from 11 a.m. to 6 p.m. daily. For more information, call (312) 421-0111 or log onto www.111morgan.com.

Winthrop Properties is a joint enterprise of developers Bob Horner and Ibrahim Shihadeh. Horner and Shihadeh share more than 40 years of real estate experience, during which time they have built and sold more than 5,000 homes.

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