Looking for first time home buyer loan programs in Illinois? We’ve found them all! There are many programs that will assist you with tax reductions, down payment assistance and so much more!
Remember – even previous homeowners can qualify for first time home buyer loan programs if they haven’t had ownership interest in a property for at least three years! If you owned a home more than 36 months ago, these programs can still help you!
Illinois has amazing first time home buyer loan programs!
There are several special mortgage products in Illinois for low income home buyers. Some of them can even be used by repeat buyers who aren’t purchasing for the first time!
1st Home Illinois is available to buyers who are purchasing a home in Boone, Cook, DeKalb, Fulton, Kane, Marlon, McHenry, St. Clair, Will or Winnebago counties. This program combines a 30-year fixed rate mortgage with $7,500 in down payment assistance grants that don’t need to be repaid. It is exclusively for first-time home buyers, veterans and those who haven’t owned a home for the last three years.
IHDAccess Deferred offers 5% of the home’s purchase price (up to $7,500) in down payment and closing cost assistance. This amount is an interest-free loan that is deferred for the life of the mortgage. You don’t repay it until you either pay off your mortgage, sell your house or refinance. This is also available on all mortgage types. First-time buyers and repeat buyers can qualify.
IHDAccess Forgivable offers 4% of the home’s purchase price (up to $6,000) in down payment and closing cost assistance. This amount is forgiven at a set rate every month. After 10 years, the amount is completely forgiven and does not have to be repaid! This program is available on all mortgage types. It can be used by first-time home buyers and repeat homebuyers across Illinois.
IDHAccess Repayable offers 10% of the home’s purchase price (up to $10,000) in down payment and closing cost assistance. This program is an interest-free second loan that must be repaid with monthly payments. The loan term is 10 years.
Mid-Central Community Action can provide down payment assistance to buyers who purchase a home in McClean, Livingston, Ford, Piatt, DeWitt, Logan, Tazewell and Woodford Counties. This assistance is provided as a loan that is fully forgiven after five years.
Regions Bank may be able to provide 100% no down payment mortgages to low income buyers who make 80% or less than that area’s median income. According to the Madison County website where I found this information, you will need a credit score of at least 680 and you’ll have to contribute at least $500 toward the loan.
Cities and counties offer additional first time home buyer loan programs!
Chicago offers several programs for first time home buyers. Unfortunately, information about their first time home buyer programs seems to be locked behind a page that demands a Chicago address. I have reached out to the City of Chicago for more information about these programs. The website does show that the city offers affordable homes for purchase and city-funded homes to rehabilitate.
In a partnership with Neighborhood Housing Services, the City of Chicago offers a Neighborhood Lending Program that can help low income homeowners purchase and improve a one to four unit building. This program also offers one-on-one housing counseling and classroom instruction on budgeting, credit repair and other financial issues.
The city also offers a TaxSmart Mortgage Credit Certificate Program, which can reduce the amount of income taxes you owe every year you live in and make payments on your home.
DuPage County is served by Home Ownership Money Education (HOME) DuPage, an agency that provides homeownership counseling, homebuyer education, financial resources and foreclosure prevention counseling. Although they do not distribute any funds themselves, this agency can help you identify your options and make the best choices on the path to homeownership.
Joliet offers down payment assistance between $1,000 and 20% of the home’s purchase price! The assistance is provided as a zero interest, deferred second loan. To receive these funds, the home buyer must provide at least $2,500 of their own funds toward the purchase and meet other requirements.
Kankakee has partnered with Midland States Bank to provide down payment assistance to buyers who purchase a home within Kankakee city limits. The grant can provide up to $2,500 per buyer.
Lake County is served by Affordable Housing Corporation of Lake County. This agency provides up to 5 percent of the home’s purchase price in down payment assistance to buyers who meet income criteria. The assistance is provided in a zero-interest, deferred loan that is forgiven at a rate of 1/60th every month (starting 60 days after purchase). After 5 years and 60 days in the home, the loan is completely forgiven. They also offer homebuyer education, counseling and more to first time homebuyers.
Madison County may be able to award up to $6,000 in down payment and closing cost assistance through loans that are fully forgiven after five years.
Moline may provide up to $6,500 toward your down payment and $2,000 toward your closing costs. You’ll be required to pay at least $1,500 of your own funds toward the purchase.
Normal offers up to $3,000 toward your purchase of a home in Normal. This program is not limited to first time home buyers but does have income limits. Mobile homes do not qualify. The assistance is provided in a fully-forgivable five year loan.
Rockford offers up to $14,999 toward your down payment and closing cost assistance. If the home needs repairs, you may be eligible for an additional $25,000 in rehabilitation funds!
St. Clair County can provide assistance with down payments and closing costs. However, their website does not list a maximum cap or eligibility requirements. Applicants are encouraged to contact Monique York at 618-825-3226 for more information.