Finding your way in the housing market can be tough for first-time home buyers, especially the First Time Home Buyer Loan in Illinois. However, Illinois offers a range of first time home buyer loan options to make purchasing a home more affordable.
If you haven't owned a home in the past three years or meet other eligibility requirements, programs offered by the Illinois Housing Development Authority (IHDA) could help you secure a low-interest mortgage, along with down payment and closing cost assistance.
Here’s a look at the top loan options available to you; Loan Factory can help you find solutions for your homeownership journey.
Illinois offers various assistance programs through IHDA’s Access Mortgage program, providing affordable 30-year fixed-rate loans through an approved network of lenders.
With an IHDA mortgage:
- Don’t need a down payment, but you must contribute at least $1,000 or 1% of the home price, whichever is greater.
- If you can, it's a good idea to make a bigger down payment. Paying at least 20 percent means you won’t need to buy private mortgage insurance (PMI).
IHDA Access Forgivable Mortgage
- The Access Forgivable Mortgage provides up to 4% of the purchase price, up to $6,000 for down payment and closing cost assistance..
- This forgivable loan means you don’t have to repay it as long as you stay in the home for at least 10 years.
- The program is available with conventional, FHA, VA, or USDA loans and requires a minimum credit score of 640 and a debt-to-income (DTI) ratio below 50%.
IHDA Access Deferred Mortgage
- This program offers 5% of the home’s price (up to $7,500) for down payment and closing cost assistance.
- IHDA’s Access Repayable Mortgage is deferred until you refinance, sell, or pay off the mortgage.
- To qualify for an IHDA Access Deferred Mortgage, you need a credit score of at least 640 and a DTI ratio of 50 percent or less.
- With an interest-free loan and flexible repayment terms, this option is ideal for those needing immediate help without monthly repayments.
IHDA Access Repayable Mortgage
- This program allows for a higher assistance amount, up to 10% of the purchase price (up to $10,000) for down payment and closing costs, repaid in interest-free installments over 10 years.
- These programs have income and purchase price limits based on location, and while they don’t require a down payment, you must contribute either $1,000 or 1% of the purchase price (whichever is greater).
Ready to buy your first home in Illinois?
First time homebuyers in Illinois: Loan Factory is here to help you save money and find affordable loans. We specialize in that:
- We'll find you the best rates to reduce your monthly payments.
- We can help you explore programs to make homeownership more affordable.
- We believe in transparency and will clearly explain all costs involved.
- Our AI-powered online application is quick and simple.
- We'll help you find the right loan with low rates and affordable payments.
- Our friendly team is here to answer your questions and make the process a breeze.
Loan Factory reviews on Google MapAt Loan Factory, we are committed to helping you achieve your Illinois homeownership goals. We believe everyone deserves to own a home, and we're excited to help make that happen for you! Please visit our website: www.LoanFactory.com or call us at phone number: (714) 444-9999.
Let us help you make your dream a reality!
For more expert insights on mortgages and down payment assistance, check out Loan Factory’s Blog today!
