First-time homebuyers in Illinois have a wide range of loan options, including conventional financing, Veterans Affairs (VA) loans for veterans, U.S. Department of Agriculture (USDA) loans for properties in rural areas and Federal Housing Administration (FHA) loans designed for first-time borrowers, although not limited to that group. In addition, the Illinois Housing Development Authority (IHDA) offers several homebuyer programs available to both first-time homebuyers and repeat buyers.
The IHDA Access program provides down payment and closing cost assistance to eligible borrowers. Three options are available:
- Forgivable loan of 4% of the purchase price up to $6,000, forgiven over 10 years.
- Deferred loan of 5% of the purchase price up to $7,500, deferred until the purchase loan is refinanced or paid in full or the house is sold.
- Repayable loan of 10% of the purchase price up to $10,000, repaid with an interest-free loan over 10 years.
IHDA Mortgage Opening Doors
This program offers up to $6,000 in down payment and closing costs as a loan that will be forgiven over five years. Opening Doors works in combination with multiple loan programs.
IHDA Mortgage SmartBuy
Borrowers with at least $1,000 in student loan debt can receive up to $5,000 in down payment and closing cost assistance. In addition, these borrowers can receive up to $40,000 in student loan debt relief. The student loan relief can’t exceed more than 15% of the home’s purchase price or $40,000, whichever is lower, and must pay off the entire student loan balance of at least one of the borrowers at the closing.
The following requirements apply to all IHDA homeownership programs. Buyers must:
- Have a credit score of 640 or higher
- Meet income and purchase price limits
- Contribute $1,000 or 1% of the purchase price, whichever is greater
- Live in the home as their primary residence
- Complete a homebuyer education class or homebuyer counseling