Illinois housing development programs
IHDAccess Forgivable Mortgage
IHDAccess Forgivable Mortgage
IHDAccess Forgivable Mortgage
- 4% of the purchase price up to $6,000 in assistance for down payment & closing costs, forgiven monthly over 10 years – it’s a gift that does not have to be repaid
- 30-year, fixed rate mortgage with an affordable interest rate
- Available for all mortgage types, including FHA, VA, USDA and FNMA HFA Preferred
- Available to first-time and repeat homebuyers statewide
IHDAccess Repayable Mortgage
IHDAccess Forgivable Mortgage
IHDAccess Forgivable Mortgage
- 10% of the purchase price up to $10,000 in assistance for down payment & closing costs offered as an interest-free loan – repaid monthly over a 10 year period
- 30-year, fixed rate mortgage with an affordable interest rate
- Available for all mortgage types, including FHA, VA, USDA and FNMA HFA Preferred
- Available to first-time and repeat homebuyers statewide
IHDAccess Defered Mortgage
IHDAccess Defered Mortgage
IHDAccess Defered Mortgage
- 5% of the purchase price up to $7,500 in assistance for down payment & closing costs offered as an interest-free loan, deferred for the life of your mortgage – you don’t need to repay until you sell your house, refinance, or pay off your mortgage
- 30-year, fixed rate mortgage with an affordable interest rate
- Available for all mortgage types, including FHA, VA, USDA and FNMA HFA Preferred
- Available to first-time and repeat homebuyers statewide
1st Home Program
IHDAccess Defered Mortgage
IHDAccess Defered Mortgage
- $7,500 in assistance for down payment and closing costs
- A secure, 30-year fixed-rate mortgage with a competitive interest rate
- Hasn’t owned a home in the last three years including first-time homebuyers, and all Veterans
- Is purchasing in the following counties: Cook, Marion, St. Clair, or Winnebago (ELIGIBLE COUNTIES UPDATED AS OF 1/1/2019)
- Choice of FHA, VA, USDA or Conventional loan type
FHA Loans
What you need to know.
An FHA loan is a mortgage insured by the Federal Housing Administration. With a minimum 3.5% down payment for borrowers with a credit score of 580 or higher, FHA loans are popular among first-time home buyers who have little savings or flawed credit.
How FHA is different
It's easier to qualify for an FHA loan than for a conventional loan, which is a mortgage that is not insured or guaranteed by the federal government. An FHA loan allows for lower credit scores and, in some cases, lower monthly mortgage insurance payments.
FHA loan eligibility and requirements
Credit score. If your credit score is 500 or higher, you may qualify for an FHA loan. Minimum credit score on conventional mortgages is 620 but can vary by loan program and lender.
Minimum down payment. The minimum down payment on an FHA loan is 3.5% if your credit score is 580 or higher. The minimum down payment is 10% with a credit score of 500 to 579.
Loan limits. The maximum FHA loan size depends on where the home is. The limit is lower in the least expensive housing markets and higher in the most expensive housing markets.
Debt-to-income ratios. With both FHA and conventional mortgages, your total monthly debt payments can be up to 50% of your pretax income.
Mortgage insurance. FHA mortgage insurance cannot be canceled if you made a down payment of less than 10%, while private mortgage insurance on conventional loans can be canceled after you have accumulated sufficient home equity.
Foreclosure. You can't have a foreclosure or have given up your property’s deed in lieu of foreclosure within the past three years. There are exceptions for extenuating circumstances such as serious illness or the death of a wage earner.
VA Loans
What is a VA Loan
A VA loan is guaranteed by the U.S. Department of Veterans Affairs. The loan itself isn’t actually made by the government, but the fact that it’s backed by a government agency makes lenders feel more comfortable offering these loans, because they take on less risk than with a conventional mortgage.
How does it work?
Basically, you fill out paperwork from the VA that verifies your eligibility for the program. You also receive what’s known as your entitlement, which is the dollar amount guaranteed on each VA loan. Lenders might be willing to loan up to four times the amount of your entitlement.
With all of that in place, it’s possible to get a VA loan with no money down. VA loans also don’t require private mortgage insurance (PMI), but you will pay a VA funding fee when you close, which will be a percentage of the loan’s total value. That fee helps keep the program running for future borrowers.
How does it work?
Basically, you fill out paperwork from the VA that verifies your eligibility for the program. You also receive what’s known as your entitlement, which is the dollar amount guaranteed on each VA loan. Lenders might be willing to loan up to four times the amount of your entitlement.
With all of that in place, it’s possible to get a VA loan with no money down. VA loans also don’t require private mortgage insurance (PMI), but you will pay a VA funding fee when you close, which will be a percentage of the loan’s total value. That fee helps keep the program running for future borrowers.
What are the requirements
First of all, you need to make sure you’re eligible for a VA loan. The government has service requirements for veterans or those on active duty, and also offers opportunities for certain military spouses to qualify for VA loans. You can get more information from the government’s website, but the basic requirements include:
- You’re currently on active military duty, or you’re a veteran who was honorably discharged and met the minimum service requirements.
- You served at least 90 consecutive active days during wartime or at least 181 consecutive days of active service during peacetime.
- Or, you served for more than six years in the National Guard or Selective Reserve.
If your spouse died in the line of duty, you may qualify for a VA loan.
In order to apply, you need to obtain a VA Certificate of Eligibility, or COE. Without this certificate, you won’t be able to get your loan.