Last Updated on August 7, 2022 by Danielle McDonald
Mortgage Assistance for Homebuyers in Illinois
Kane County First-Time Homebuyer Program
The Kane-Elgin HOME Consortium funded the First-Time Buyer Program which is associated with the Kane County Down Payment Assistance Program to assist individuals in achieving their goals of homeownership.
Available Assistance
The First-Time Homebuyer Program offers assistance funds for income-eligible first-time homebuyers up to $10,000 for down payment or closing costs. This comes as a second mortgage with zero interest and deferred payments, which is payable to Kane County. However, the amount is due for payment in the event of sale, transfer or revocation of the home or when it is no longer used as the applicant’s primary residence, the amount due for repayment.
Eligibility Requirements
Every applicant must meet specific requirements to qualify for Kane County Down Payment Assistance Program. This program is only available for first-time homebuyers. Therefore, those who have not purchased a home within the last three years, and have been Kane County residents for at least one year are eligible. All applicants also must be within the income limit for the program. Hence, the total annual household income cannot be over 80% of the area median income (limits listed below).
Property Guidelines
The homes purchased using program funds must be the borrower’s primary residence. It must also be in Kane County or a part of the City of Elgin, Cook County. Single-family detached homes, condominiums, and townhomes are all eligible property types. However, manufactured homes are not eligible. The properties purchased must not be over the program’s maximum purchase price; $209,000 for existing houses, and $228,000 for new houses.
Income Limits
- 1-person household: $43,050
- 2-person household: $49,200
- 3-person household: $55,350
- 4-person household: $61,500
- 5-person household: $66,450
- 6-person household: $71,350
- 7-person household: $76,300
- 8-person household: $81,200
1stHomeIllinois
The Illinois Housing Development Authority (IHDA) together with 1stHomeIllinois provides first-time homebuyers down payment assistance. This program integrates a 30-year fixed-rate mortgage with a $7,500 down payment assistance grant. Whereas, the 1stHomeIllinois is created for veterans, first-time homebuyers, or anyone who has not owned a home for the past three years.
Available Assistance
1stHomeIllinois provides first-time homebuyers and veterans an affordable way to finance their home. It comes as a 30-year, fixed-rate mortgage at a competitive rate, and a $7,500 grant to cover the down payment and closing costs. Borrowers may also choose among FHA, VA, USDA, or FNMA HFA Preferred loan types.
Eligibility Requirements
All applicants for the 1stHomeIllinois program must be either veterans or first-time buyers (those who haven’t owned a house in the past three years) to qualify. They must also meet all credit requirements of the lender, and the program’s income limits and purchase price limits. Additionally, the applicant must contribute $1,000 or 1% of their purchase price, whichever is higher, and finish a homeownership counseling before closing.
Property Guidelines
Homes purchased through the 1stHomeIllinois program funds must be the borrower’s primary residence. It must also be an existing residential house (so, no new construction). The borrower must also buy a one or two-unit property within Cook, Marion, St. Clair, or Winnebago counties in Illinois.
1stHomeIllinois
1stHomeIllinois assists veterans and first-time homebuyers. A 30-year fixed-rate mortgage is available. Applicants can also receive a $7500 down payment assistance grant.
Available Assistance
A 30-year fixed-rate mortgage is available. Applicants can also receive a $7500 down payment assistance grant. This grant does not require repayment because it’s a gift. Borrowers can choose from FHA, VA or USDA loans, as well as conventional loans.
Eligibility Requirements
All borrowers must meet the requirements to be eligible for 1stHomeIllinois. Only first-time homebuyers (those that have not purchased a home within the last three years) as well as veterans are eligible. They also need to meet the income limits for the program, which differ by county. All applicants must contribute $1,000 or 1 percent of their cash assets to the purchase price, whichever is higher. They also need to meet minimum credit requirements and take a homeownership counseling class, either online or in person.
Property Guidelines
All property purchased under 1stHomeIllinois must be the borrower’s primary residence. The program has maximum purchase prices that vary from one county to the next. One or more units and existing residential dwellings (new construction exempt) are eligible properties in Boone, Cooke, DeKalb or Fulton counties.
City of Alton’s Homeownership Program
Alton’s Homeownership Program helps increase homeownership in the area by providing down payment assistance and closing costs assistance to income-eligible homeowners.
Available Assistance
Alton’s Homeownership Program offers down payment assistance and closing costs assistance through a five-year, forgivable loan. The maximum loan amount depends on the income of applicants. Low-income buyers can borrow $3,000 and Very Low-Income qualified buyers can borrow $5,000. The availability of funds is dependent on the applicants’ income.
Eligibility Requirements
To be eligible for assistance funding, all applicants must meet the program requirements. To be eligible, applicants must have a household income below 80 percent of that area’s median income. Credit history for the past year is also a requirement. The applicant must also be able contribute $1,000 towards the transaction. This can be in the form either earnest money deposits or cash at closing. The applicants must also be able to secure a first mortgage at a fixed rate of 1 percent below the market rate and complete a HUD-approved counseling course for homebuyers.
Property Guidelines
The purchase of properties must be within the City Limits, serve as the borrower’s primary residence and not exceed the program’s maximum purchase price.
Income Limits
The income of a household is any income earned by members of the household (18 years old or older) who live in the house, regardless of whether they have a mortgage.
- 1 person household – $37,600
- 2 person household – $43,000
- 3 person household – $48,350
- 4 person household – $53,700
- 5 person household – $58,000
- 6 person household – $62,300
- 7 person household – $66,600
- 8 person household – $70,900
Community Connections Home Buyer Assistance Program
Chicago’s City Council created the Community Connections Homebuyer Assistance Program. This program provides financial assistance to its residents for down payments and closing costs.
Available Assistance
Community Connections Home Buyer Assistance Program offers applicants down payment and/or closing costs assistance in the form of a grant of up to 7% of total loan amount, which is based on income. This grant only for first-time homebuyers, unlike other down payment assistance programs. Therefore, the program is open to anyone who meets the income requirements and has a good credit rating. Then. you can use the funds to refinance your home, provided there is no cashback.
Eligibility Requirements
To be eligible for Community Connections Home Buyer Assistance Program, applicants must meet certain criteria. Then, qualified borrowers will need to contribute $1,000 or 1% from their own funds towards the home’s purchase price, whichever is lower. This program aims to help a wide range of families, including middle- and lower-income households. However, income and credit score limits are based on the type and amount of the first mortgage that a borrower obtains. FHA, VA, USDA loan borrowers need to have an annual household income of no more than $88,435 (regardless family size) and a minimum credit score 580 in order to qualify. Fannie Mae/Freddie Mac borrowers have to have income of less than $131.775 (regardless family size) with a credit score not lower than 640.
Homebuyer Education
Participants in the program as first-time homebuyers must take a homebuyer education class.
Property Guidelines
The Community Connections Home Buyer Assistance Program allows applicants to purchase single-family homes, townhomes and condominiums as well as owner-occupied properties with up to four units.
Down Payment Plus Programs
The Federal Home Loan Bank of Chicago provides easy-access closing cost assistance programs and down payment assistance for homebuyers with low and moderate incomes through their Downpayment Plus Programs.
Available Assistance
The Down payment Plus (DPP), a matching program, works on a 3:1 ratio of the homebuyer’s net contribution. The assistance available is only $6,000 or 25% of the first mortgage. The maximum DPP grant amount is $3,000 if the homebuyer makes the minimum contribution of $1,000. However, if the applicant invests $2,000 or more they will be eligible to receive $6,000. Then, the borrower receives a forgivable grant on their behalf. You may use this to pay closing costs assistance, down payment and closing costs, counseling costs for homebuyers (up to $700) and/or rehabilitation costs related to the purchase of a house.
The Down payment Plus Advantage program works in a similar way, but it leans more in assisting borrowers who are participating in mortgage programs with nonprofit organizations. However, to be eligible for subsidies under the DPP Advantage program, all non-profit organizations must register as partners with FHLB Chicago. DPP Advantage is exempted from the 3:1 matching ratio but can grant a maximum amount of $6,000 or 25% of the first mortgage.
Eligibility Requirements
All applicants must meet the requirements to be eligible for the Down payment PLUS Programs. They must also obtain a first mortgage from a participant member and provide a signed purchase contract. Additionally, the applicants must have an annual household income of at least 80 percent of the area median, adjusted for size. They must also disclose their current income sources as well as any pending income changes or employment status. Before receiving grant funds, applicants must also make a homebuyer counseling course.
Property Guidelines
All properties purchased must be the primary residence of the applicants. The following property types are eligible: attached or detached homes with one or more units, condominiums, manufactured homes, and condos. All new constructions must be finished before closing.
This programme doesn’t seem to exist for First-Time Homebuyer Assistance Programs in Idaho.
HOMEbuyer Program
The HOMEbuyer program in Madison County, Illinois aims to encourage home ownership. The HOMEbuyer Program provides funds to help with closing costs and down payments for eligible people who are able to afford the monthly mortgage payment but not the large upfront costs.
Eligibility Requirements
To be eligible for the HOMEbuyer program, applicants must fall in the low- or medium-income bracket (shown below). They must also be first-time buyers of single-family housing. This includes existing or new construction, as well as condominium units.
Income Limits
For HOMEbuyer Program assistance, households must have a household income that is less than 80% of the area median income.
- 1 person household: $41,750
- 2 person household: $47,700
- 3 person household: $53,650
- 4 person household: $59,650
- 5 person household: $64,400
- 6 person household: $69,150
Madison County’s HOMEbuyer program offers financial assistance up to $5,000 depending on household income to help with closing costs and down payments for applicants to new homes. Additionally, the closing costs that are eligible include appraisal fees and credit report fees, inspection fees, homebuyer counseling fee, settlement and title fees and processing and underwriting fees. Then, remember that the Homebuyer Program applications must only be submitted by a Madison County lender.
Joliet Down Payment Assistance Program
The City of Joliet, Illinois established the Joliet Down Payment Assistance Program, which is designed to help low-income applicants with down payment assistance to purchase their home.
Available Assistance
The Joliet Down Payment Assistance Program provides income-eligible applicants with down payment assistance in the form of a zero-interest, forgivable second mortgage, with a note and recapture agreement. Applicants can then receive assistance funds between a minimum of $1,000 and a maximum of 20 percent of the purchase price of the home.
Eligibility Requirements
To be considered eligible for the program, all borrowers must meet certain requirements. However, only applicants with a low annual household income—one that does not exceed 80 percent of the area median income—are eligible for down payments assistance. Then, all applicants are responsible for completing 8 hours of homebuyer counseling from an HUD-approved agency. They are also required to contribute a minimum of $2,500 from their own funds toward the mortgage transaction.
Property Guidelines
Borrowers are required to hold ownership of any property being purchased with program funds, and it must serve as their primary residence. The following are the eligible property types: single-family homes, townhouses, condominiums, and manufactured homes on a fixed foundation. Then, homes located in the 100-year flood plain or that are tenant-occupied are ineligible. The home must also be located within the Joliet city limits, and must not exceed the program’s maximum purchase price limits.
Income Limits
Household income is defined as all income received by household members (18 years or older) who will be living in the home, even if they are not on the mortgage.
- 1 person household – $43,050
- 2 person household – $49,200
- 3 person household – $55,350
- 4 person household – $61,500
- 5 person household – $66,450
- 6 person household – $71,350
- 7 person household – $76,300
- 8 person household – $81,200
Kane County First-Time Homebuyer Program
Kane-Elgin HOME Consortium funded the First-Time Homebuyer Program, which is part of the Kane County Downpayment Assistance Program. This program helps individuals realize their homeownership dreams.
Available Assistance
First-Time homebuyer Program offers income-eligible applicants $10,000 in assistance funds that can be used to help with down payment or closing costs. However, this is a second mortgage with zero interest and deferred payments that can be paid to Kane County. In the event of sale, transfer or revocation of the home or its use as the applicant’s primary residence, the amount due for repayment.
Eligibility Requirements
To be eligible for Kane County Down Payment Assistance Program, all applicants must meet certain criteria. Only first-time homebuyers, meaning those who have not purchased a home within the last three years, and have been Kane County residents for at least one year, are eligible. The income limit for the program is 80 percent of the area median.
Property Guidelines
A home purchased using program funds must be the borrower’s primary residence. It must be in Kane County or a part of the City Elgin in Cook County. Single-family detached homes, condos, townhomes, and townhomes are all eligible property types. Manufactured homes are not eligible. Maximum purchase price for the property is $209,000 for existing properties and $228,000 to buy new homes.
Income Limits
The income of a household is any income earned by members of the household (18 years old or older) who live in the house, regardless of whether they have a mortgage.
- 1 person household: $43,050
- 2 person household: $49,200
- 3 person household: $55,350
- 4 person household: $61,500
- 5 person household: $66,450
- 6 person household: $71,350
- 7 person household: $76,300
- 8 person household: $81,200
Normal Homebuyer’s Down Payment Assistance Program
Normal, Illinois, offers the Homebuyer’s Down payment Assistance Program. This program is funded by Community Development Block Grant and covers a portion for applicants who are eligible.
Available Assistance
This program grants applicants up to $3,000 to help with the down payment and closing costs of a mortgage transaction. The assistance will enable the applicant to obtain a second mortgage on their home. Additionally, the loan is free of interest and requires no monthly payments. The loan amount of 20% will be forgiven for each year the applicant resides in the home. Then, the entire amount is forgiven within five years.
Eligibility Requirements
This program is not like other down payment assistance programs. It does not require a first-time homebuyer to apply. However, it is restricted to individuals who are below the maximum income limits based on their household size (shown below). Therefore, the applicant must make the home their primary residence and it must be in Normal. However, this program does not apply to mobile homes.
Income Limits
The income of a household is any income earned by members of the household (18 years old or older) who live in the house, regardless of whether they have a mortgage.
- 1 person household: $46,000
- 2 person household: $52,600
- 3 person household: $59,150
- 4 person household: $65,700
- 5 person household: $71,000
- 6 person household: $76,250
- 7 person household: $81,500
- 8 person household: $86,750
Romeoville Assist Program
Residents can access the Homebuyer Assistance Program (also known as Assist Program) at the Village of Romeoville. It offers potential homebuyers the Mortgage Credit Certificate (MCC), as well as funds for all or most of the closing costs and the downpayment.
Available Assistance
The MCC program reduces homebuyers’ ongoing costs of borrowing. In addition, the Assist Program allows applicants to use 3 percent of their loan amount to cover the down payment and closing expenses associated with the mortgage. This grant is combined with a 30-year fixed-rate FHA/VA/RD mortgage.
Eligibility Requirements
All applicants must meet the requirements to be eligible for the Assist Program. However, this program is only for first-time homebuyers. Therefore, refinancers and homeowners who have owned a house in the past three years are not eligible. The income limits for the program are based on the household size and whether the home is in a targeted area or not.
Property Guidelines
The property must be the applicant’s primary residence and not exceed the maximum purchase price limit (Non-Targeted: $344,819; Targeted: $421,446). The following property types are eligible: Single-family homes, townhomes, condominiums, and newer, owner-occupied single-family homes.
Income Limits
The income of a household is any income earned by members (18-years or older) who live in the house, regardless of whether they have a mortgage.
Non-Targeted Area
- 1 or 2 person household: $79,432
- 3 or more person household: $91,347
Targeted Area:
- 1 or 2 person household: $92,280
- 3 or more person household: $107,660
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