EmailCall

Mortgage Guide

How to get a home loan

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:

Type

Max Assistance

Forgivable

Up to $6,000

Grant

Up to $7,500

Deferred

Up to $7,500

Repayable

Up to $10,000

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

Example:

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.

Expectations.

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.

 

Get the Complete Guide to IHDA

  • Tweet your mortgage questions. Get answers from our staff underwriters.
  • Subscribe and never miss out. We'll keep an eye on mortgage rates for you- for free. You'll get monthly tips too.
  • Learn more about the NewCastle Home Loan mortgage process, starting with Step 1.

 

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