Illinois first time home buyer programs may help eligible buyers reduce upfront costs through down payment assistance, closing cost assistance, forgivable loans, deferred second mortgages, repayable assistance, and affordable 30-year fixed-rate mortgage options.
The simple answer:
Illinois first-time homebuyers may be able to use IHDA Mortgage programs, local down payment assistance programs, FHA, USDA, VA, Conventional low-down-payment loans, seller credits, gift funds, or lender credits to help buy a primary residence. Eligibility depends on income, purchase price, credit score, property location, loan type, program funding, and lender approval.
The Illinois Housing Development Authority, or IHDA, offers mortgage programs for first-time and repeat homebuyers, with assistance available for down payment and closing costs. IHDA’s current lending programs include Access Home, Access Forgivable, Access Deferred, and Access Repayable, each with different assistance amounts and repayment terms.
Important note: This article is for informational purposes only and is not a commitment to lend or a guarantee of program availability. Illinois first-time home buyer program eligibility, IHDA assistance, down payment assistance, grants, forgivable loans, deferred loans, seller credits, lender credits, rates, APR, fees, payment estimates, mortgage insurance, cash to close, income limits, purchase price limits, property eligibility, and closing timelines depend on borrower qualifications, property location, program guidelines, lender approval, underwriting, appraisal, title, insurance, and available funding.
Key Takeaways Illinois First-Time Home Buyer Programs may include statewide IHDA Mortgage programs and local programs from counties or cities. IHDA’s Access Home program offers 6% of the purchase price up to $15,000 in assistance for down payment and closing costs as an interest-free loan deferred for the life of the mortgage; repayment is due when the home is sold, refinanced, or the mortgage is paid off. IHDA Access Home requires homebuyers and spouses to be first-time homebuyers or exempt, such as eligible veterans or buyers purchasing in targeted areas. IHDA Access Forgivable offers 4% of the purchase price up to $6,000, forgiven monthly over 10 years. IHDA Access Deferred offers 5% of the purchase price up to $7,500 as an interest-free loan deferred until sale, refinance, or mortgage payoff. IHDA Access Repayable offers 10% of the purchase price up to $10,000 as an interest-free loan repaid monthly over 10 years. IHDA programs generally require a minimum credit score of 640, income and purchase price limits, homeownership counseling before closing, primary residence occupancy, and a buyer contribution of $1,000 or 1% of the purchase price, whichever is greater. IHDA income and purchase price limits are based on the county where the home is located, not where the buyer currently lives. Local programs may also be available. Cook County’s Down Payment Assistance Program is scheduled to reopen on July 20, 2026 and may provide 5% of the final first loan amount, up to $25,000, for down payment, closing costs, or mortgage buydowns. Chicago’s HomeGrown Purchase Assistance program is designed to help eligible homebuyers with down payment and closing costs, and official City of Chicago information says applications are open. What Are Illinois First-Time Home Buyer Programs? Illinois first-time home buyer programs are mortgage and assistance programs designed to help eligible buyers purchase a primary residence in Illinois.
These programs may help with:
Down payment Closing costs Prepaid taxes and insurance Mortgage buydowns, if allowed Affordable fixed-rate mortgage options Homebuyer education Access to FHA, VA, USDA, or Conventional loan products Reduced upfront cash needs Programs may be offered by:
Illinois Housing Development Authority, or IHDA County governments City housing departments Approved nonprofit housing partners Participating lenders Federal mortgage programs Local down payment assistance providers Most programs are not automatic.
A buyer usually needs to apply, meet program guidelines, complete required education, qualify for a mortgage, and buy an eligible property.
Buyers who want to compare broader mortgage options can review first-time homebuyer home loan programs before evaluating Illinois-specific assistance.
Who Counts as a First-Time Home Buyer in Illinois? For many programs, a first-time homebuyer is not always someone who has never owned a home.
IHDA’s current income limits page defines first-time homebuyers for IHDAccess Home as borrowers and legally married non-borrowing spouses who do not currently retain and have not retained an ownership interest in a primary residence within the last three years.
This means you may still be considered a first-time buyer if:
You owned a home in the past but not within the last three years You are buying again after a long gap You meet a program’s targeted area exception You are an eligible veteran, if the program allows a veteran exemption Always confirm the exact definition for the program you plan to use.
Different programs may define “first-time buyer” differently.
Main Illinois First-Time Home Buyer Programs The main statewide Illinois first-time buyer programs are offered through IHDA Mortgage.
IHDA says its programs are available in all Illinois counties, subject to income limits, purchase price limits, credit score, property requirements, counseling, and lender approval.
Illinois First-Time Home Buyer Program Comparison Program
Assistance Amount
Repayment Structure
First-Time Buyer Required?
IHDA Access Home 6% of purchase price, up to $15,000 Interest-free loan deferred for life of mortgage Yes, unless exempt IHDA Access Forgivable 4% of purchase price, up to $6,000 Forgiven monthly over 10 years No, first-time and repeat buyers allowed IHDA Access Deferred 5% of purchase price, up to $7,500 Interest-free deferred loan No, first-time and repeat buyers allowed IHDA Access Repayable 10% of purchase price, up to $10,000 Interest-free loan repaid monthly over 10 years No, first-time and repeat buyers allowed
IHDA states that Access Home, Access Forgivable, Access Deferred, and Access Repayable are available for mortgage types including FHA, VA, USDA, Fannie Mae HFA Preferred, and Freddie Mac HFA Advantage.
IHDA Access Home IHDA Access Home is especially important for buyers searching Illinois first time home buyer programs because it is designed for first-time homebuyers or exempt buyers.
Access Home Highlights IHDA Access Home offers:
6% of the purchase price up to $15,000 in assistance Assistance for down payment and closing costs Interest-free second mortgage Deferred repayment for the life of the first mortgage Repayment when the home is sold, refinanced, or the mortgage is paid off 30-year fixed-rate mortgage Availability with FHA, VA, USDA, Fannie Mae HFA Preferred, and Freddie Mac HFA Advantage loan types Access Home Requirements IHDA lists these requirements for Access Home:
Meet household income and purchase price limits Minimum credit score of 640 New construction and existing homes eligible Homebuyers and spouses must be first-time homebuyers or exempt All Illinois counties are eligible Buyer must contribute $1,000 or 1% of the purchase price, whichever is greater Buyer must live in the home as a primary residence Homeownership counseling must be completed before closing Access Home may be a strong option for a buyer who qualifies and needs more assistance than some of the other IHDA products.
IHDA Access Forgivable IHDA Access Forgivable may help buyers who want assistance that can be forgiven over time.
Access Forgivable Highlights IHDA Access Forgivable offers:
4% of the purchase price up to $6,000 Assistance for down payment and closing costs Forgiven monthly over 10 years 30-year fixed-rate mortgage Available with FHA, VA, USDA, Fannie Mae HFA Preferred, and Freddie Mac HFA Advantage Available to first-time and repeat homebuyers statewide Access Forgivable Requirements IHDA lists these requirements:
Meet household income and purchase price limits Minimum credit score of 640 New construction and existing homes eligible First-time and non-first-time buyers allowed All Illinois counties eligible Buyer must contribute $1,000 or 1% of the purchase price, whichever is greater Buyer must live in the home as a primary residence Homeownership counseling required before closing This program may fit buyers who want lower assistance than Access Home but prefer a structure that may be forgiven over time.
IHDA Access Deferred IHDA Access Deferred may help buyers who want assistance now with repayment delayed until a later event.
Access Deferred Highlights IHDA Access Deferred offers:
5% of the purchase price up to $7,500 Assistance for down payment and closing costs Interest-free loan Deferred for the life of the mortgage Repayment due when the home is sold, refinanced, or the mortgage is paid off 30-year fixed-rate mortgage Available to first-time and repeat homebuyers statewide Access Deferred Requirements IHDA lists these requirements:
Meet household income and purchase price limits Minimum credit score of 640 New construction and existing homes eligible First-time and repeat buyers allowed All Illinois counties eligible Buyer must contribute $1,000 or 1% of the purchase price, whichever is greater Buyer must live in the home as a primary residence Homeownership counseling required before closing This may help buyers who can handle the mortgage payment but need help reducing cash to close.
IHDA Access Repayable IHDA Access Repayable may offer a larger assistance percentage but requires monthly repayment.
Access Repayable Highlights IHDA Access Repayable offers:
10% of the purchase price up to $10,000 Assistance for down payment and closing costs Interest-free second loan Repaid monthly over 10 years 30-year fixed-rate mortgage Available to first-time and repeat buyers statewide Access Repayable Requirements IHDA lists these requirements:
Meet household income and purchase price limits Minimum credit score of 640 New construction and existing homes eligible First-time and repeat buyers allowed All Illinois counties eligible Buyer must contribute $1,000 or 1% of the purchase price, whichever is greater Buyer must live in the home as a primary residence Homeownership counseling required before closing Because this assistance is repaid monthly, buyers should include the repayment in affordability planning.
IHDA Income and Purchase Price Limits IHDA programs use income and purchase price limits.
IHDA says income and purchase price limits are determined by the county where the home is being purchased, not the buyer’s current residence.
IHDA also explains that targeted and non-targeted areas may have different income and purchase price limits. Targeted areas are federally designated areas where more homeownership is desired.
Buyers should check:
County where the home is located Targeted vs. non-targeted status Household income calculation Purchase price limit Program-specific income limit First-time buyer or exemption status IHDA notes that the income amount used to determine IHDA eligibility may differ from the income used in automated underwriting, and lenders are required to use the IHDA Income Calculator to determine eligibility before reserving funds.
This is why buyers should not guess based only on gross income.
An approved lender or program provider should review the file.
Illinois Down Payment Assistance: What It Can Cover Illinois down payment assistance may help with:
Down payment Closing costs Prepaid property taxes Prepaid homeowners insurance Initial escrow deposits Mortgage buydowns, if the program allows Other eligible settlement costs However, assistance programs usually cannot be used for everything.
Assistance may not cover:
Personal debt Furniture Moving costs Cash back beyond program rules Repairs not approved by lender/program Appraisal gaps, unless specifically allowed Costs outside the purchase transaction Each program has its own rules.
Buyers should confirm eligible uses before making an offer.
Buyers can review down payment assistance programs to understand common assistance structures, eligibility requirements, and repayment terms before comparing Illinois-specific programs.
Understanding cash to close vs. closing costs can help Illinois buyers separate assistance-eligible expenses from the total funds they may need at closing.
Cook County Down Payment Assistance Program Illinois buyers in Cook County may also review the Cook County Down Payment Assistance Program.
Cook County says the program helps homebuyers with down payments, closing costs, or mortgage buydowns and provides subsidies equal to 5% of the home’s final first loan amount, up to $25,000.
Cook County states that the program is scheduled to reopen on July 20, 2026.
Cook County Program Highlights The program may include:
Down payment assistance Closing cost assistance Mortgage buydown assistance 5% of final first loan amount Maximum subsidy of $25,000 Cook County properties First-time and repeat buyers, if criteria are met Cook County says eligible buyers include households earning up to 120% of Area Median Income, while buyers purchasing in Disproportionately Impacted Areas or Qualified Census Tracts may have no income limit.
Cook County also states that first-time and repeat buyers throughout Cook County who meet the criteria may apply, and first-time buyers must complete a homebuyer education course before closing.
Chicago HomeGrown Purchase Assistance For buyers purchasing in the City of Chicago, the HomeGrown Purchase Assistance program may be another option to review.
The City of Chicago says HomeGrown is designed to help eligible homebuyers achieve homeownership by providing grant assistance for down payments and closing costs, and applications are now open.
City information also states that eligible buyers must:
Meet income and mortgage requirements Complete homebuyer education counseling Contribute at least 1% of the original purchase price from personal funds Have a signed contract before applying for HomeGrown funds Keep grant funds within 25% of the property purchase price before other purchase assistance is applied A City of Chicago announcement says the HomeGrown program will provide up to $70,000 in assistance for low- to moderate-income homebuyers.
Because local programs may have limited funding and application timing rules, buyers should check program status before relying on assistance in a purchase offer.
FHA Loans for Illinois First-Time Buyers FHA loans may be useful for Illinois first-time buyers who need flexible credit or lower down payment options.
FHA loans are insured by the Federal Housing Administration and made by private lenders.
FHA may allow:
Low down payment if eligible Gift funds, if properly documented Seller credits for eligible closing costs Down payment assistance, if program allows Primary residence purchases 1–4 unit properties, if FHA requirements are met FHA may be a strong option when paired with an eligible Illinois down payment assistance program.
However, FHA loans usually require mortgage insurance.
Buyers should compare FHA with Conventional, VA, USDA, and IHDA-compatible options.
Illinois buyers considering FHA financing can review FHA loan requirements to understand credit, down payment, mortgage insurance, property, and qualification requirements.
Conventional Loans for Illinois First-Time Buyers Conventional loans may also work for first-time buyers in Illinois.
Some conventional programs may allow low down payments for eligible buyers.
Illinois buyers may compare:
Conventional 97 Fannie Mae HFA Preferred Freddie Mac HFA Advantage HomeReady Home Possible Standard conventional loans IHDA states that its Access programs may be available with Fannie Mae HFA Preferred and Freddie Mac HFA Advantage, subject to program requirements.
Conventional options may be worth comparing if the buyer has:
Stronger credit Stable income Eligible down payment assistance A goal of cancellable PMI A property that fits conventional rules A lower total-cost scenario than FHA The best option depends on the full file.
For a broader comparison of standard financing, review conventional home loans to understand down payment, mortgage insurance, qualification, and other conventional loan considerations.
VA Loans for Illinois First-Time Buyers VA loans may be available to eligible Veterans, service members, and qualifying surviving spouses.
VA may offer:
No required down payment in many eligible scenarios No monthly mortgage insurance Flexible qualification review Primary residence financing Possible seller credits, subject to VA rules IHDA states that several of its Access programs are available with VA mortgage types, subject to eligibility and program rules.
An eligible Veteran buying in Illinois should compare:
VA loan only VA with IHDA assistance, if eligible VA with seller credits Conventional or FHA alternatives VA eligibility and lender approval still apply.
Eligible military borrowers can review our VA home loan guide to understand eligibility, financing features, funding fees, and other VA loan requirements.
USDA Loans for Illinois First-Time Buyers USDA loans may be available for eligible buyers purchasing in USDA-eligible rural or suburban areas.
USDA may offer:
No required down payment if eligible Primary residence financing Income and property eligibility rules USDA guarantee fee and annual fee Potential use with certain assistance programs IHDA states that its Access programs may be available with USDA mortgage types, subject to eligibility and program rules.
Illinois buyers should check:
USDA property eligibility USDA income limits Illinois county income and purchase price limits for any assistance program Closing costs and cash to close FHA and Conventional comparison USDA may be especially helpful if the property is eligible and the buyer meets income limits.
Illinois buyers considering an eligible rural property can review USDA home loans to understand property eligibility, household income limits, occupancy, and financing requirements.
Illinois First-Time Home Buyer Program Requirements Program rules vary, but many Illinois assistance programs may review:
Requirement
Why It Matters
First-time buyer status Some programs require no primary homeownership in the last three years Income limits IHDA and local programs may limit income by county, household size, or area Purchase price limits Home price may need to fit program limits Credit score IHDA Access programs generally require a 640 minimum score Primary residence Most programs require the buyer to live in the home Homebuyer education IHDA and local programs often require counseling before closing Buyer contribution IHDA generally requires $1,000 or 1% of purchase price, whichever is greater Property location County, city, targeted area, or local program boundaries may matter Loan type FHA, VA, USDA, Conventional, and HFA programs may be allowed differently Funding availability Grants and assistance may run out or change
Buyers should verify requirements before signing a purchase contract.
For broader mortgage qualification criteria beyond Illinois assistance programs, review the first-time homebuyer loan requirements .
Documents Needed for Illinois First-Time Home Buyer Programs Common documents may include:
Identity and Personal Information Government-issued ID Social Security number or eligible identification Current address Prior address history Marital status, if required Household information, if required by program Income Documents Pay stubs W-2s Tax returns, if applicable 1099s, if applicable Self-employment documents Award letters for Social Security, disability, pension, or retirement income Employment verification Income from all required sources for program eligibility Asset Documents Bank statements Savings statements Gift fund documents Down payment assistance documents Large deposit explanations Proof of earnest money deposit Retirement or investment statements, if used Property and Program Documents Purchase contract Property address Homebuyer education certificate IHDA or local assistance approval Income calculator results, if required Targeted area verification, if applicable Appraisal Title report Homeowners insurance Closing disclosure Documentation requirements can change by program and lender.
Prepare early.
Illinois buyers preparing their documents can review the mortgage application document checklist to understand the income, asset, property, and other documentation commonly needed for a mortgage application.
How to Apply for Illinois First-Time Home Buyer Programs Step 1: Get Pre-Approved Start with a documented mortgage pre-approval so you can estimate your:
Purchase price range Monthly payment Down payment Closing costs Cash to close Loan program options Assistance eligibility Step 2: Check Program Eligibility Review:
IHDA eligibility County programs City programs FHA, VA, USDA, and Conventional options Income limits Purchase price limits Credit score requirements Property location rules Step 3: Complete Homebuyer Education IHDA requires homeownership counseling before closing for its Access programs.
Cook County also requires first-time homebuyers to complete a homebuyer education course before closing.
Step 4: Compare Loan and Assistance Options Compare:
IHDA Access Home IHDA Access Forgivable IHDA Access Deferred IHDA Access Repayable Cook County assistance Chicago HomeGrown, if buying in Chicago FHA Conventional VA, if eligible USDA, if eligible Seller credits Lender credits Step 5: Make an Offer With the Right Credit Strategy If you need seller credits or assistance, structure the offer carefully.
Ask your loan advisor and real estate agent to coordinate:
Seller credit amount Program assistance amount Appraisal risk Purchase price limit Closing timeline Program reservation deadlines Homebuyer education timing Step 6: Complete Underwriting and Program Approval After contract, the lender and assistance program may review:
Income Credit Assets Property Appraisal Title Insurance Assistance documents Homebuyer education Final cash to close Step 7: Close on the Home At closing, assistance funds are applied according to program rules.
Review your Closing Disclosure carefully before signing.
Illinois First-Time Home Buyer Example Hypothetical example only: This example is for educational purposes only and is not a quote, approval, or commitment to lend. Actual mortgage approval, assistance approval, rates, APR, fees, payment, down payment, seller credits, cash to close, and closing terms depend on borrower qualifications, program rules, lender guidelines, property details, underwriting, appraisal, title, insurance, and available funding.
A first-time buyer in Illinois wants to purchase a primary residence.
The buyer has:
Stable income Credit score above IHDA’s minimum requirement Limited savings for down payment and closing costs Interest in FHA or Conventional financing Willingness to complete homebuyer education A home located within program purchase price limits The loan advisor compares:
Option
How It May Help
IHDA Access Home Larger deferred assistance if first-time buyer or exempt IHDA Access Forgivable Smaller assistance that may be forgiven over time IHDA Access Deferred Deferred assistance for down payment and closing costs IHDA Access Repayable Larger repayable assistance with monthly repayment FHA loan Flexible credit and low down payment option Conventional HFA option May work well with stronger credit and HFA programs Seller credit May reduce eligible closing costs Local program May add extra assistance if property location qualifies
The best option depends on program eligibility, payment comfort, cash to close, and long-term cost.
Loan Factory Experience Note: In real first-time buyer reviews, the strongest Illinois purchase strategy starts with three checks: the buyer’s mortgage pre-approval, the property’s program eligibility, and the estimated cash to close after assistance, seller credits, and lender credits.
Common Mistakes to Avoid Mistake 1: Assuming Every Illinois Buyer Qualifies Illinois first-time home buyer programs have income limits, purchase price limits, credit requirements, property rules, and funding limits.
Mistake 2: Waiting Too Long to Ask About Assistance Some programs require education, reservation, program approval, or a signed contract before funding is reviewed.
Mistake 3: Forgetting the Buyer Contribution IHDA Access programs generally require the buyer to contribute $1,000 or 1% of the purchase price, whichever is greater.
Mistake 4: Assuming Assistance Is Always a Gift Some assistance is forgivable, some is deferred, and some is repayable.
Read the terms carefully.
Mistake 5: Ignoring Income and Purchase Price Limits IHDA states that income and purchase price limits are based on the county where the home is located.
Mistake 6: Not Checking Local Programs Cook County and Chicago may have additional programs, depending on timing, funding, location, and eligibility.
Mistake 7: Comparing Only Assistance Amount A larger assistance amount may come with repayment, deferral, or forgiveness rules.
Compare total cost, payment, cash to close, and future obligations.
Mistake 8: Choosing a Home Before Checking Program Limits The property may exceed purchase price limits, fall outside program boundaries, or fail property requirements.
Mistake 9: Not Comparing FHA, Conventional, VA, and USDA A first-time buyer program is only one part of the mortgage decision.
The first mortgage matters too.
Illinois First-Time Home Buyer Checklist Use this checklist before applying.
Question
Why It Matters
Am I a first-time buyer under the program definition? Some programs use a three-year ownership rule What county is the home in? IHDA income and purchase limits depend on property county Is the property in a targeted area? Targeted area rules may change limits or eligibility What is my credit score? IHDA Access programs generally require 640 Do I meet income limits? Income limits vary by program and county Is the purchase price within limits? Program eligibility may depend on price Can I contribute $1,000 or 1%? IHDA requires a buyer contribution Will I live in the home? Primary residence is required Have I completed homebuyer education? Required for many programs Which first mortgage works best? FHA, Conventional, VA, USDA, or other Do I need seller credits? Helps reduce eligible closing costs Is local assistance available? Chicago or Cook County programs may help Is funding still open? Programs can change, pause, or run out
Loan Factory helps Illinois homebuyers compare mortgage options from 240+ wholesale lenders using technology designed to make the home loan process clearer, faster, and more transparent.
If you are researching illinois first time home buyer programs, Loan Factory can help you compare FHA, Conventional, VA, USDA, Jumbo, and other loan options while reviewing down payment, closing costs, seller credits, lender credits, payment estimates, and cash-to-close strategies.
What Loan Factory Offers Illinois Buyers Access to 240+ wholesale lenders Side-by-side mortgage comparisons for rate, APR, payment, fees, mortgage insurance, credits, and cash to close Review of FHA, Conventional, VA, USDA, Jumbo, refinance, and other available mortgage options Local loan advisor support to explain down payment, closing costs, seller credits, lender credits, and program questions TERA technology platform to support pricing, loan comparison, document flow, and loan review No application fee to start reviewing your mortgage options Support for first-time buyers comparing state, county, city, and lender-based options Loan Factory does not guarantee IHDA approval, local program approval, down payment assistance approval, seller credit acceptance, property eligibility, or funding availability.
For IHDA, Cook County, Chicago, or other local assistance programs, borrowers must meet the specific program rules and work through approved channels when required.
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Author Box Written by: Loan Factory Mortgage Education Team
Loan Factory is a technology-powered mortgage platform helping homebuyers compare mortgage options from 240+ wholesale lenders. Our mortgage education content is designed to help borrowers understand Illinois first-time home buyer programs, down payment assistance, FHA loans, Conventional loans, VA loans, USDA loans, closing costs, affordability, and the home loan process before applying.
Compliance Disclaimer This content is for informational and educational purposes only and is not a commitment to lend, not legal advice, not tax advice, and not financial advice. Illinois first-time home buyer program eligibility, IHDA assistance, Cook County assistance, Chicago assistance, down payment assistance, grants, forgivable loans, deferred loans, repayable assistance, seller credits, lender credits, rates, APR, fees, payment estimates, mortgage insurance, closing costs, cash to close, income limits, purchase price limits, property eligibility, program availability, appraisal results, and closing timelines depend on borrower qualifications, property location, program guidelines, lender requirements, underwriting, appraisal, title, insurance, and available funding. Not all applicants, households, properties, or programs will qualify. Terms and funding may change without notice.
Loan Factory is not affiliated with or acting on behalf of IHDA, the State of Illinois, Cook County, the City of Chicago, HUD, FHA, VA, USDA, Fannie Mae, Freddie Mac, FHFA, CFPB, or any government agency. FHA, VA, USDA, Conventional, Jumbo, conforming, non-conforming, down payment assistance, and other loan programs are offered through participating lender partners and approved program providers, subject to eligibility and underwriting approval.
Equal Housing Opportunity.
FAQ: Illinois First-Time Home Buyer Programs 
