STATEWIDE PROGRAMS

Illinois Housing Development Authority (IHDA) Loan Programs
The IHDA offers mortgage programs that include assistance with downpayment and closing costs through its IHDAccess Programs.

IHDAccess Forgivable Mortgage

Assistance Available:
Homebuyers can receive up to 4% of the purchase price in the form of a 10 year forgivable monthly gift. The maximum assistance is $6,000. This is in conjunction with a fixed rate first mortgage at affordable interest rates. FHA, VA, USDA, FNMA HFA Preferred loans are available.

Qualifications:
You do not have to be a first time homebuyer. The minimum credit score is 640. There are income and purchase price limits. Existing homes and new construction are acceptable.

IDHAccess Deferred Mortgage

Assistance Available:
5% of the purchase price is available in the form of a 0% interest loan that does not require repayment until you sell, refinance, or pay off your mortgage. The maximum assistance is $7,500. This is in conjunction with a fixed rate first mortgage at affordable interest rates. FHA, VA, USDA, FNMA HFA Preferred loans are available.

Qualifications:
You do not have to be a first time homebuyer. The minimum credit score is 640. There are income and purchase price limits. Existing homes and new construction are acceptable.

IHDAccess Repayable Mortgage

Assistance Available:
10% of the purchase price is available in the form of a 10 year, 0% interest loan that is repayable monthly. The maximum assistance available is $10,000. This is in conjunction with a fixed rate first mortgage at affordable interest rates. FHA, VA, USDA, FNMA HFA Preferred loans are available.

Qualifications:
You do not have to be a first time homebuyer. The minimum credit score is 640. There are income and purchase price limits. Existing homes and new construction are acceptable.

CITY AND COUNTY PROGRAMS

Chicago
Downpayment Plus Programs
Members of the Federal Home Loan Bank of Chicago have access to their Downpayment Plus Programs that are intended to give those members assistance with downpayment and closing costs. There are 2 basic programs available.

Downpayment Plus Program

Assistance Available:
This is a matching program for homebuyers who are income eligible. The assistance comes in the form of a forgivable grant. The grant is forgiven monthly over a period of 5 years. The amount provided is the lesser of 1) $6,000; 2) 25% of the first mortgage; 3) three times the member contribution.

Qualifications:
The member limit is $420,000. Funds are limited and disbursed on a first come, first serve basis. You must complete approved pre-purchase homebuyer education and counseling.

Downpayment Plus Advantage

Assistance Available:
This is not a matching program. It is designed to assist income eligible homebuyers who are participating in home buying programs offered by non-profit organizations that provide their own first mortgage financing to the borrower, such as Neighborhood Housing Services and Habitat for Humanity. These organizations must partner with an FHLBank Chicago member financial institution in order for the borrower to access DP Advantage.

The maximum grant allowed is $6,000 repayable monthly over a period of 5 years.

Qualifications:
There is no member limit. You must complete approved pre-purchase homebuyer education and counseling.

Homebuyer Assistance Program

Assistance Available:
The City of Chicago along with Mayor Rahm Emaneul established the Homebuyer Assistance Program to help residents who want to purchase or refinance a home. The program offers grants for up to 7% of the purchase price. The actual amount is based on income. The program is administered by the Chicago Infrastructure Trust.

Qualifications:
The income limit to qualify for assistance is $131,775 for Fannie Mae and Freddie Mac loans. The income limit to qualify for downpayment assistance with FHA, VA, and USDA loans is $88, 435. These income limits are regardless of family size. Buyers must contribute the lesser of 1% of the purchase price or $1000 at closing.

You do not have to be a first time homebuyer, and you can use the loan to refinance an existing mortgage. There is no cash back allowed at closing. First time homebuyers must complete a homebuyer education course. Single family homes, townhomes, condominiums, and 1 - 4 owner occupied units qualify.

City of Alton
City of Alton Homeownership Program

Assistance Available:
The City of Alton Homeownership Program was established in 1997 in order to promote the ownership of affordable housing to low and moderate income residents. The city’s program offers qualified applicants downpayment assistance and assistance with closing costs in the form of 5 year forgivable loans. A maximum of $3000 is available to low income homebuyers, and a maximum of $5000 is available to very low income homebuyers. Funds are limited and offered on a first come, first serve basis.

Qualifications:
The maximum allowable income is below 80% of the area’s median. Buyers must be approved for fixed rate first mortgages that are within 1% of market rates. You must contribute a minimum of $1000 as earnest money, cash at closing, or a combination of the two. Buyers must have 12 months of clean credit history.

Completion of a homebuyer counseling course is required. The property being purchased may be located anywhere within the City of Alton as long as the purchase price limits are met.

City of Joliet
Down Payment Assistance Program

Assistance Available:
The City of Joliet works with the Will County Center for Community Concerns to provide downpayment assistance and help with closing costs for low income homebuyers. The assistance consists of up to 20% of the purchase price. The minimum assistance available is $1000. This is a deferred payment second mortgage with 0% interest. It is secured by a note and recapture agreement.

(On June 30, 2019 the City of Joliet was not taking applications.)

Qualifications:
Buyers must contribute a minimum of $2500 in personal funds. Single family homes, townhomes, condominiums, and manufactured homes on permanent foundations are eligible. Properties that are rented or in the 100 year flood plain are ineligible. The property purchased must pass a home inspection. Purchase price limits and other restrictions apply.

Kane County
First-Time Homebuyer Program

Assistance Available:
The Kane County First-Time Homebuyer Program is funded by Kane-Elgin Home Consortium. It provides up to $10,000 in downpayment assistance in the form of a 0% interest deferred payment loan with no monthly payments. The loan is deferred until the property purchased is sold, transferred, or no longer used as the buyer's primary residence. Homebuyers purchasing property within the city limits of St. Charles may be eligible for an additional $10,000 in assistance under the same terms and conditions.

Qualifications:
In order to qualify you must have lived or worked full time in the Kane-Elgin Consortium area for a minimum of 1 year prior to applying for the program. Buyers must contribute a minimum of 1% of the purchase price of the property. You cannot exceed the federal income limits and must complete a homebuyer education course.

Single family homes, townhomes, and condominiums are eligible. The property being purchased must pass a visual inspection and a lead based paint inspection.

Town of Normal
Home Buyer’s Down Payment Assistance Program

Assistance Available:
Funding for the Home Buyer’s Down Payment Assistance Program is provided by the Community Development Block Grant. The maximum grant is $3000 and provided through the buyer’s first mortgage lender. This is a 5 year loan with 20% forgiven annually as long as the home remains the primary residence of the qualified homebuyer. After 5 years the loan is released by the Town of Normal.

Qualifications:
Your debt to income ratio may not exceed 37%. Your home to income ratio may not exceed 30%. The downpayment made by the purchaser may not exceed 10%. Your household income must fall within HUD’s established guidelines. The homebuyer must retain a minimum of $1000 in bank funds after paying the downpayment and closing costs.

The property purchased must be located in the Town of Normal and be used as the homebuyer’s primary residence. Mobile homes are not eligible.

Village of Romeoville
Homebuyer Assistance

Assistance Available:
The Village of Romeoville works with a number of other communities in Illinois to offer funds to homebuyers that cover the majority of downpayment and closing costs. The homebuyer assistance program provides a full 3% cash grant to offset the costs of purchasing a home.

Qualifications:
You must meet the income and purchase price requirements. First time home buyers (have not owned a home in the past 3 years) only qualify. The loan may not be used to refinance an existing loan. You must be able to qualify for an FHA, VA, or RA 30 year fixed rate first mortgage. You must live in the property purchased as your primary residence.

The maximum purchase price in targeted areas is $411,529 and $336,706 in non-targeted areas. The income limit in non-targeted areas is $79,000 for 1 or 2 people and $90,850 for 3 or more people. The income limit in targeted areas is $94,800 for 1 to 2 people and $110,600 for 3 or more in a household.