First Home Illinois – IHDA Loan
Big news for first-time homebuyers in specific counties in Illinois!
If you’re looking to buy your first home in the counties of Boone, Cook, DeKalb, Fulton, Kane, Marion, McHenry, St. Clair, Will, or Winnebago, then you can now apply for the IHDA’s 1st Home Illinois loan program.
The 1st Home Illinois program offers competitive rates and down payment assistance for first-time homebuyers, veterans, and anyone who hasn’t owned a home in within the last three years. This program encourages and makes buying a home within reach for many first-time homebuyers.
Now that interest rates are at historic lows and rents have skyrocketed, buying a home with 1st Home Illinois seems like a no-brainer.
But what advantages does the 1st Home Illinois program offer to applicants?
And how do you qualify for one? Is it difficult?
All of these are good questions and will be answered below.
1st Home Illinois Benefits
Illinois Housing Development Authority (IHDA) loans are designed to be streamlined, making the loan process much simpler for first-time homebuyers. This is already a benefit in and of itself, but the 1st Home Illinois program offers much more.
The benefits of the 1st Home Illinois programs offers:
- Down Payment Assistance: 1st Home Illinois can supply buyers with up to $7,500 to help bolster a down payment on a home. This money can also be used to cover closing costs if the buyer wants to.
- 30-year FRM: The 1st Home Illinois program is offered as a 30 year fixed-rate mortgage. This means your interest rate and monthly payments will stay the same over the course of your term. First-time homebuyers are attracted to this option because it gives them time to pay off their mortgage. This also gives borrowers access to competitive interest rates to make their monthly payments more affordable.
- Flexibility: The third advantage of the 1st Home Illinois program is that there are a variety of options available to customize your loan as needed. It can also be used for multiple types of mortgages, such as a conventional, FHA, USDA, and VA loan.
Wow! That’s a lot of good news for homebuyers in Illinois. But what about the qualifications?
1st Home Illinois Qualifications
Just like any other mortgage program, the 1st Home Illinois program has a set of qualifications that need to be met in order to make use of it. As helpful as the program is, you still need to follow the guidelines put in place by the IHDA.
In order to qualify for the 1st Home Illinois program, here’s what you’ll need to know:
- Location: In order to be eligible for the 1st Home Illinois program, a home must be in the Illinois counties of Boone, Cook, DeKalb, Fulton, Kane, Marion, McHenry, St. Clair, Will, or Winnebago.
- Number of Units: One and/or two unit properties are the only types that can bought with this program.
- Type of Buyer: In order to qualify, you must be a first-time homebuyer, a veteran, or you haven’t owned a home during the last three years (within the counties mentioned).
- Finance: Borrowers will also be required to contribute either $1,000 or 1% of the purchase price of the home (determined by whichever is greater).
- Income & Purchase Price: The IHDA has Income and Purchase price limits that need to be followed. You can find the limits from the IHDA here.
- Credit: The IHDA also has credit requirements that need to be met for the 1st Home Illinois program, which needs to be 640 or above.
- Residence: The 1st Home Illinois program can only be used on a home that you intend to use as your primary residence.
- Counseling: The IHDA also requires you to take a homeownership counseling course. This course is available for in-person and online classes. If your credit score does not meet the minimum requirement, counseling is offered to those to help strengthen your score and prepare you for your homeownership.
That’s certainly a large amount of requirements, but they’re not impossible to overcome. Just like any other mortgage program, you can clear these obstacles with proper planning and patience.
Now, if you are interested, you’re probably wondering, how do you apply?
Are there other expenses or fees within this process?
Again, we have all the answers to your questions!
How do I apply?
Many lenders have IHDA loans available for applicants to take advantage of.
However, keep in mind ONLY applicants who are first-time homebuyers, veterans, or anyone who hasn’t owned a home within the last three years are qualified to apply.
If you are interested in applying, find a top-performing lender near you so they can appropriately assist you on landing your dream home.
Luckily for you, Neighborhood Loans is specialized and familiar with helping families finance an IHDA loan.
Stop by today and start a mortgage application to get this process started!
Before heading over, make sure you bring the following paperwork and have your personal information on hand, so they can accurately determine your eligibility.
Are there other expenses?
As mentioned before, an advantage using this program offers down payment assistance of $7,500.
This amount does not need to be paid back, however, you need to live in the home for a minimum of five years.
If you were to sell your home before the five-year mark, a portion of the down payment will need to be repaid.
As for closing costs, you will need to fund this expense on your own.
Or if you would like, use the down payment assistance towards your closing costs.
Typically, closing costs include the following: title company closing fee, attorney fees, and title and insurance policy fees.
These charges are the final stretch of your mortgage process and seals the deal on your real estate transaction.
Before the keys are handed over, these expenses must be handled.
Fortunately, your lender will be able to estimate your closing costs to give you a better idea of what you can expect.
If you are wondering what else happens on closing day, here’s everything you need to know.
Also, nn February 1st, 2018, The Illinois Housing Development Authority (IHDA) rolled out THREE new programs that helps people statewide with limited income purchase a home.
Can the 1st Home Illinois program be used to purchase a condominium or townhouse?
How much of a down payment would I need to save before getting the down payment assistance once qualified?
Im buying a house FHA but i was not aware of this program closing date is next month can i still sign up for this?
Are there any plans on changing the income limits? My wife and I are about $1000 over the limit for McHenry county.
Are there any exceptions to the credit limits as I’m getting an fha loan and I know the credit requirement is 660. However I’m at a 653 and it would suck to lose 7500 over 7 points especially when conventional loan requirements is only 640?
If I had a condominium in Cook county and now want to purchase a home. Would I still qualify? I’m also a veteran
what are current rates 30 year fixed? Are you higher than most because of the down payment assistance program? How are you 1 of three qualified lenders for this program in such a huge state?
If you become the beneficiary of a first time home buyer grant, how much time has to pass or what are the requirements to have the loan forgiven as long as you continue to reside in the home?
How do I calculate my total income? Do I go by Gross Pay or wages reported on my w2?
Does anyone have this kind of help to purchase a home in Washington County Illinois.
I’m looking at a house in Madison county. I am a first time home buyer. Are there any grants available that you know of?
If my credit score is 645 will I meet the credit requirements in cook county?
Do you go off of 2016 income shown in W-2’s or do you use current income from paycheck stubs to determine qualicication?
I would like more information about 1st home illinois. Can I be contacted further to discuss details, but it appears my target relocation for a new job area isn’t a program target area of Marion, IL, not to be confused with the targeted county of Marion which is north of the town an hour as if that makes sense, haha.
Thank you, Shane
Can i refinance my home if i have the first time homebuyers grant and i have not lived in my home for the full five years
After living at property 5 years. Does the grant has to be payback?
I am thinking of selling but it will of only been 4 years when i do. Will I only have to pay back 1 year of the grant? And would that just be 1500?
We’ve only lived in our house for 3 years and have to move upstate. I have been trying to find how much we would owe back of the 7500 we received. What number do I call?
What if I sold a home in another state last year? But, I have never owned a home in Illinois…
Can the funds be used for both the down payment AND the closing costs or is it one or the other?
We are a first time home buyer, (we actually just had one) and didn’t avail of this program because according to the lender., the interest rate is higher than the regular FHA loan. Is this really true? If we elect to apply for the program, will we still qualify even if we already bought it 6 months ago?
Can you use the down payment plus grant with the 1st home illinois grant and is eligibility criteria the same?
I’ve been reading about stacking or layering different programs for down payment and 1st time home buyer programs. Are you aware of any programs that can be used together to minimize cash needed?
Could you please contact me via email. I would like to give you my home address. So you could send me info on the IHDA program.
Can this be used towards the purchase of a condo?
Can you use this loan to build a Shipping Container Home? If I follow HUD requirement for a Manufacturer home.
I am in the process of purchasing a townhome in Will county. My tentative close date is 11/03/2017. Is it too late for me to see if I am eligible to receive the down payment
What is the down payment on a 2 unit building? Building is in Cook. I’M A FIRST TIME BUYER. And does FHA works for this program I have a closing date of November 20,2017.
Can you use this towards a townhouse?
What does you credit score have to be
Do you offer any options for people interested in buying a home in Dupage County?
What is the current Interest Rate on an IDHA loan?
my credit isnt the greatest and i am looking to be a first home buyer any suggestions