Are you thinking of buying your first home in Illinois, but worried you will not have enough money for the down payment and closing costs? Would you like a some information regarding low interest loan programs and incentives that could help you qualify to purchase that first home? If you answered yes to these two questions, there is great news for you. The state of Illinois provides funds for its residents who are first time home buyers and need help with the down payment and closing costs. It will be well worth your time to educate yourself about the programs that the State of Illinois provides.
Illinois First Time Home Buyer Programs from IHDA
The agency in Illinois that provides assistance to the home buyers is The Illinois Housing Development Authority. There is currently one such grant program available, depending upon your income. Low and moderate income families can receive a grant of up to $3,000 to help with down payment and closing costs, and very low-income families can receive a grant of up to $5,000. To find out if you qualify, please visit the Illinois Housing Development Authority website page specifically describing this very helpful resource. You can simply go to this page to get the specific details and requirements.
IHDA allocates funds to a network of partners across the stateto administer a number of programs to help Illinois first-time home buyers attain homeownership affordably. Homebuyers can receive:
Down payment and closing cost assistance
Down payment, closing costs with funds to rehabilitate their new home; and
Subordinate loans
Funding for this assistance comes from two resources:
– HOME Investment Partnerships Program (HOME)
– Illinois Affordable Housing Trust Fund program
The contact info for IHDA is:
Illinois Housing Development Authority
401 N. Michigan Avenue, Suite 700
Chicago, IL 60611
Phone: (312) 836-5200
TDD: (312) 836-5222
Other Programs in IL
In addition to the grant programs described above, the U.S. Department of Housing and Urban Development provides home buyer assistance and grants in every state. There are multiple programs designed specifically for people who meet certain requirements, such as grants for people with disabilities so they can continue to live independently at home. It is worth visiting HUD’s website to see what assistance is currently available.
Here is the contact information for the HUD office in Illinois:
Chicago Regional Office
Ralph Metcalfe Federal Building
77 West Jackson Boulevard
Chicago, IL 60604-3507
Phone: (312) 353-5680
Fax: (312) 913-8293
There are also these local programs:
Alton Homeownership Program (HOP) (618) 463-3801
The Homeownership Program is funded primarily through the Illinois Housing Development Authority (IHDA). Additional program funding may be available through Community Development Block Grants (CDBG). To maintain program consistency, the guidelines established by IHDA will govern the program operation irrespective of the funding source.
2. The term of the assistance provided is a 0% forgivable loan with a five-year restriction period. Households whose annual income is less than 50% of the area median are eligible for up to $5,000 in IHDA funds. Households between 50.1% and 80% of median income are eligible for $3,000 (See attached guidelines). Subject to funding availability, the City of Alton reserves the right to restrict the maximum grant amount to $3,000.
3. All buyers must invest at least $1,000 of their own funds in the project.
Cook County Homebuyers Program (HBP) (312) 603-1062
Dekalb First-Home Program (815) 748-2060
The DeKalb City Council in cooperation with the local lending institutions has developed a down payment assistance program for qualified individuals. In order to make the dream of ownership more accessible to a larger number of individuals and families, the City of DeKalb is providing Community Development Block Grant (CDBG) funds for grants of 2% of the purchase price of a home to qualified individuals.
ELIGIBILITY:
1. The first-time homebuyer, an individual or family who has not owned a home during the preceding three-year period, also any individual who is a displaced homemaker or a single parent if, while married, the individual owned a home with his or her spouse.
East St. Louis CDBG Operations Corporation HOME Investment Partnership Program (HIPP) (618) 482-6635
Madison County HOMEbuyer Program (HBP) (618) 692-8940
Madison County Community Development will provide a portion of the minimum down payment and closing costs. The total maximum amount of assistance provided by Madison County Community Development shall be $5,000 for households at or below 50% of median income, or $3,000 for households at or below 80% of median income. Financial assistance from Madison County will be offered in the form of a forgivable loan. A lien will be filed for the amount of the assistance.
The property being purchased can be an existing or newly constructed home. It may be either a detached single-family dwelling or condominium. This program will not assist in the purchase or inspection of rental property, manufactured or mobile homes. The maximum value of the property being purchased must not exceed the program limit of $161,500.
Springfield Home Ownership Assistance (HOA) (217) 789-2408
The Springfield Home Ownership Program (SHOP) was created to encourage home ownership in Springfield by assisting low-income residents with the first-time purchase of a home.
The City can loan up to $7,000 toward the down payment and related costs of buying a qualified home in Springfield.
The loan is interest-free and repayment is generally not required until the home is sold, refinanced or transferred. For details regarding the terms and conditions of repayment of a SHOP loan, please contact the Springfield Housing Programs at 726-2358. The buyer must contribute at least $1,500 of his/her own funds toward the purchase of the home.
St Clair County Homebuyer Assistance Program (HAP) (618) 277-6790
