EmailCall

Mortgage Guide

How to get a home loan

IHDA - Illinois First Time Home Buyer Programs


What’s keeping you from buying a house? “I don’t have enough cash for a down payment.”

We’ve heard this conversation over and over. Many aspiring homeowners are discouraged from buying a house, because they do not have funds available for a 20% down payment. First, this “down payment requirement” is a myth. You don’t need to pay 20% for your down payment; there are loan programs that require as little as 3.5% down.

But what if you still don’t have enough cash for the 3.5% down payment?

IHDA

If you plan to purchase a house in Illinois, the IHDA (Illinois Housing Development Authority) has down payment assistance programs to a first time home buyer out. As long as you have a good credit score, you qualify for the income requirements and the purchase limits; you can apply for these programs.

1st Home Illinois offers a $7,500 cash assistance that you can use toward down payment and closing costs. It also provides a secure 30-yr. fixed rate mortgage with competitive interest rates.

This program applies to conventional, FHA, USDA or VA loans.

What are the requirements?

  • You must...
    • Be a first-time homebuyer or
    • Not have owned a home in the last three years or
    • Be a Veteran of the United States.
  • You must be purchasing a home in Boone, Cook, DeKalb, Fulton, Kane, Marion, McHenry, St. Claire, Will, or Winnebago counties.
  • You must purchase a 1 or 2-unit property.
  • You must meet income requirements and purchase limits.
  • You must have a good credit score.
  • You must contribute $1,000 or 1% of the property’s purchase price, whichever is higher.
  • The home you’re buying must be your primary residence.
  • You must complete homeownership counseling.

@Home Illinois

Home Illinois is a 30-year fixed rate mortgage that allows you to choose from the following options:

  • $5,000 cash assistance for down payment and closing cost.
  • Lender paid mortgage insurance.
  • A Federal tax credit certificate (in the form of Mortgage Credit Certificate or MCC) for first-time buyers.

This program applies to conventional, FHA, USDA and VA loans. The option you choose will affect your interest rate.

What are the requirements?

  • You must...
    • Be a first-time homebuyer or
    • Not have owned a home in the last three years or
    • Be a Veteran of the United States or
    • Want to refinance.
  • You must meet income requirements and purchase limits.
  • You must have a good credit score.
  • You must contribute $1,000 or 1% of the property’s purchase price, whichever is higher.
  • The home you’re buying must be your primary residence.
  • You must complete homeownership counseling.

Don’t let limited funds for a down payment stop you from owning your home. Call us at (855) 610-1112 or email us and we will work through these programs to help you finance your home.

Check Our Rates in Real Time!

You may also like:



How long does it take to close an IHDA mortgage?

Are you a first time home buyer in Illinois and wondering about how long it takes a lender to close an IHDA loan? You ar...

What is IHDA’s minimum down payment requirement on a mortgage?

Before many home buyers begin searching for a house, they get caught up in how much money they need for a down payment. ...

Have an underwater mortgage in Illinois? IHDA I-Refi program offers help

Many Chicago-area homeowners have reported their homes aren’t worth as much as they need to repay. However, the problem ...

Subscribe

Buying a home and don't know where to start?

 

Our weekly email will supply you with homebuyer and mortgage basics to make the process simple.

Quick. Anonymous. Free. Search Rates