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IHDA offers down payment assistance programs for your home purchase

Many first time home buyers in Illinois look to the Illinois Housing Development Authority (IHDA) to see if they qualify for a down payment assistance program. In this article, we will go over the benefits, application process, and expectations of using IHDA.

Who benefits?

An Illinois first-time homebuyer, anyone who has not owned a home in the last three years, or a veteran of the United States.

What are the benefits?

1. The primary benefit is down payment assistance programs up to $10,000.

Here is an IHDA sample of down payment assistance types and amounts:


Max Assistance


Up to $6,000


Up to $7,500


Up to $7,500


Up to $10,000

The minimum borrower investment for the purchase is the greater of 1% of the purchase price or $1,000.


A home buyer wants to purchase a single-family home in Cook County (Illinois) for $140,000. They will need to pay $1,400 as the minimum borrower investment (using the 1% of the purchase price as this is higher than $1,000).

2. An IHDA first mortgage is locked in for 30-years so your interest rate never goes up. The loan programs eligible are conventional, FHA, USDA, and VA loans.

How the application process works.

  1. Before putting an offer on a home, get pre-approved for the mortgage.
  2. Complete IHDA pre-purchase homeownership counseling.
  3. Close with confidence.


Are you short on cash and looking to purchase? First time home buyers should trust the process. Buying a home includes working with a team of professionals such as lenders, realtors, attorneys, and title companies that will guide you every step of the way.  

IHDA down payment assistance is an incentive for you to stop paying your landlord and start building equity in your own home. This will give you peace of mind.  

For more information on IHDA, read our co-founder’s article on IHDA - Illinois First Time Home Buyer Programs and check out our IHDA ebook.

In 2017, IHDA celebrated their 50th anniversary and has helped make housing affordable. First-time home buyers and others can still use IHDA to help make the dream of owning their first home come true. In Fiscal Year 2017, IHDA invested  $1.4 billion in 10,200 units of affordable housing (IHDA Annual Report 2017).

NewCastle Home Loans is a proud supporter and lending partner of IHDA. For more information to see if you qualify for IHDA down payment assistance, call us at 855-610-1112.


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