This BLOG On IHDA Mortgage Guidelines On Illinois Home Purchase Was PUBLISHED On January 13th, 2019
The Illinois Housing Development Authority (IHDA) has a very popular down payment assistance grant home loan program.
- This program is for Illinois home buyers
- There are a down payment assistance and grant loan program for home buyers
- The Illinois down payment assistance home loan program does not require repayment
- Repayment guidelines varies with the Illinois home purchase grant program
- The Illinois Reach and Purchase Power grant program allows lower credit scores than the IHDA Grant Loan Program
- This DPA program was created and launched to promote first time home buyers realize their dream of home ownership become a reality
- Many hard working Illinois families can afford a monthly mortgage payment but lack the down payment on a home purchase
- Gustan Cho Associates at Loan Cabin can help first time home buyers who lack down payment and guide them in realizing their dream of home ownership become a reality
The Gustan Cho Team at Loan Cabin Inc. has helped countless of families become homeowners over the years.
IHDA Mortgage Guidelines For First Time Home Buyers
Many home buyers are not familiar with the IHDA Mortgage Guidelines for first time home buyers. Is IHDA money free money? Is it a loan? Does it need to be paid back to the state of Illinois and/or lender?
The answer to these questions is dependent on IHDA Mortgage Guidelines on the loan program:
- There is the $7,500 grant loan program
- The 1stHomeIllinois, is a forgivable home loan program that does not require repayment if homeowner were to live in the property for at least 5 years
- In the event if homeowner sells their home in the first 5 years of occupancy, a percentage of the grant is required to be repaid to IHDA
- The $6,000 Access Forgivable Grant Program does not require repayment if the homeowner lives in their property for at least 10 years
- In the event homeowners sell their property in the first ten years of occupancy, a percentage of the grant needs to be repaid to IHDA
- With the $7,500 grant, Access Deferred IHDA mortgage loan program, the grant needs to be paid back when the first mortgage matures
- Or it needs to be paid back to IHDA when the property sells, and/or property owner refinances
- The $10,000 IDHA Access Repayment, homeowners need to repay the grant over the course of 10 years
- The $5,000 Illinois grant needs to be repaid back to IHDA with the following terms: $46.67 a month for 10 years
IHDA Mortgage Guidelines For Borrowers
Not everyone can qualify for IHDA down payment assistance loans.
- IHDA requires borrowers to have at least 640 credit scores
- Need an approve/eligible per automated underwriting system
- Lenders needs to be an IHDA Approved Lender
DPA – Within Reach and Power Purchase
There is no repayment required on DPA-Within Reach and Power Purchase:
- Minimum credit score requirement is 620 FICO
- For seasoned and first time home buyers
- Gift funds are permitted
- IHDA and Down Payment Assistance Programs do not have a maximum loan limit required
- Sellers concessions allowed up to 6% on FHA and 4% on VA Loans
- Manual Underwriting allowed
- One to four unit owner occupant properties
Gustan Cho Associates at Loan Cabin Inc. are experts in assisting first time home buyers. We are direct lenders with no overlays on government and conforming loans. Please reach out to us at 262-716-8151 or text us for faster response. Or email us at email@example.com.