Mortgage 101: How to Get $7,500 in Down Payment Assistance as a First-Time Homebuyer

Posted by Laine Smith on 2/20/17 10:06 AM

Topics: Saving Money First Time Home Buyer Closing on your Home Mortgage Goals Down Payment Assistance

With mortgage rates and rent prices climbing on top of the availability of several down payment assistance programs, there’s no better reason to purchase your first home sooner rather than later. Here’s how the Illinois Housing Development Authority's loan program 1stHomeIllinois makes homeownership even more enticing for first-time buyers.

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Program Benefits

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

Eligibility

  • Must be a first-time homebuyer or someone who has not owned a home in the last three years (veterans are exempt).
  • Borrowers must contribute $1,000 or 1 percent of the home’s purchase price, whichever is greater.
  • 1stHomeIllinois is available in Boone, Cook, DeKalb, Fulton, Kane, Marion, McHenry, St. Clair, Will, and Winnebago counties.
  • Borrowers must be purchasing a primary residence, 1-2 unit single-family property.
  • IHDA income and purchase price limits
  • Borrowers must complete homeownership counseling.

1stHomeIllinois is available through IHDA qualified lenders, like Compass Mortgage. For more information about eligibility and program benefits, contact one of our mortgage bankers. Funds are limited, 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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