How to Get $7,500 in Down Payment Assistance as a First-Time Homebuyer in Illinois

Posted by Laine Smith on 8/31/16 3:09 PM

Topics: Purchasing A Home First Time Home Buyer home buying Mortgage Goals Down Payment Assistance Down Payments

With interest rates near historic lows, rent costs still on the rise, and the availability of down payment and closing cost assistance programs, there are no greater incentives to become a first-time homebuyer. Here's how the Illinois Housing Development Authority's mortgage program makes homeownership even more enticing for first-timers.

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IHDA's 1stHomeIllinois program, which was introduced last year, is expected to help up to 4,000 first-time homebuyers, but funds are limited.

Program Benefits

  • $7,500 down payment and/or closing cost assistance (assistance is forgivable after 5 years and requires no repayment)
  • Options of a 30-year fixed-rate mortgage (FHA, Conventional, USDA, & VA)
  • Competitive interest rates

Who Is Eligible?

First off, you must be a first-time homebuyer or someone who has not owned a home in the last three years. Veterans are exempt from this rule. Other eligibility requirements include:

  • Location: IstHomeIllinois is available in Boone, Cook, DeKalb, Fulton, Kane, Marion, McHenry, St. Clair, Will, and Winnebago counties.
  • Home Type: Borrowers must be purchasing a primary residence, 1-2 unit single-family property.
  • Income & Price Limits: IHDA income and purchase price limits apply. See your county’s income and purchase price limits here.

How Do I Get a 1stHomeIllinois Mortgage?

1stHomeIllinois is available through IHDA qualified lenders, like Compass Mortgage. Homebuyers must contribute $1,000 or 1 percent of the purchase price (whichever is greater), complete homeownership counseling and meet credit requirements.

For more information about eligibility and program benefits, contact one of our mortgage bankersMortgage rates won’t stay this low forever, so now is the time to act!

Looking for more information about buying and financing your first home? Download our free Mortgage 101 Handbook, a great resource for first-time buyers.

Download: Mortgage 101 Handbook

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