In this blog, we will cover and discuss IHDA mortgage guidelines on Illinois home purchases. The Illinois Housing Development Authority (IHDA), commonly referred to as IHDA, is a down payment assistance mortgage program for homebuyers in Illinois. IHDA mortgage guidelines make homeownership possible for homebuyers in Illinois with covering the down payment and closing costs for homebuyers who do not have the necessary funds to purchase a home.
Illinois Housing Development Authority loans is a very popular down payment assistance grant home loan program. This program is for Illinois homebuyers. There are a down payment assistance and grant loan program for homebuyers.
“IHDA” could stand for “Illinois Housing Development Authority,” a government agency in Illinois, United States, that provides various housing-related programs and services, including mortgage assistance programs for first-time homebuyers and low- to moderate-income individuals or families. The IHDA mortgage programs typically offer below-market interest rates, down payment assistance, and other incentives to help individuals and families achieve homeownership. In the following paragraphs, we will cover IHDA mortgage guidelines as well as other down payment assistance programs for homebuyers in Illinois.
IHDA Mortgage Guidelines on DPA That Does Not Require Repayment
There are several types of down payment assistance programs for homebuyers in Illinois. IHDA mortgage guidelines are down payment assistance programs for only Illinois homebuyers. There are forgiveable and non-forgivable down payment assistance mortgage programs for homebuyers.
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 allow lower credit scores than the IHDA Grant Loan Program. This DPA program was created and launched to promote first-time homebuyers to realize their dream of home ownership become a reality. Qualify for a Mortgage Loans with Bad Credit
Down Payment Assistance For Homebuyers in Illinois
Many hard-working Illinois families can afford a monthly mortgage payment but lack the down payment on a home purchase. Gustan Cho Associates can help first-time homebuyers who lack down payment and guide them in realizing their dream of home ownership become a reality. Gustan Cho Associates has helped countless of families become homeowners over the years. Gustan Cho Associates has dozens of down payment assistance mortgage programs besides IHDA mortgage loans.
IHDA Mortgage Guidelines For First Time Homebuyers
Many homebuyers 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 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 the 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.
How Does The Illinois Housing Development Authority Home Loan DPA Program Work?
The IHDA (Illinois Downpayment Assistance Program) is offered by the Illinois Housing Development Authority to help first-time and repeat homebuyers in Illinois with down payment and closing cost assistance. Here are some key details about the IHDA down payment assistance program:
IHDA Mortgage Guidelines on Eligibility Requirements
Must be a first-time homebuyer or have not owned a home in the last three years (some exceptions apply). Must meet income and purchase price limits based on household size and geographic area. Must complete a homebuyer education course. Property must be a 1-2 unit primary residence in Illinois
How Much is IHDA Mortgage Assistance For Homebuyers
Provides a 30-year, fixed-rate second mortgage loan for up to $7,500 (subject to income limits). The loan can be used for down payment and closing costs. No monthly payments are required on the second mortgage. The loan is forgiven at 1/60th per month after five years of living in the home
IHDA Mortgage Guidelines on First Mortgage
Borrowers must qualify for and obtain a 30-year fixed rate IHDA first mortgage loan. Private mortgage insurance is required for down payments of less than 20%. IHDA first mortgages have income limits that vary by county/property type.
Illinois Housing Development Authority (IHDA) Mortgage Guidelines on Income Limits
Income limits are based on area median income and household size. For example, in 2024, a family of 3 in Cook County has a $109,200 income cap
IHDA Mortgage Guidelines on Home Purchase Price Limits
IHDA mortgage guidelines on home purchase price limits vary by county. For example $492,257 for a single-family in Cook County in 2024. The IHDA program aims to make homeownership more affordable for low to moderate-income households in Illinois by providing down payment and/or closing cost assistance as a forgivable second mortgage.
What Happens If Homeowners Sell The Property In The First Ten 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 IHDA 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. Click here to apply for a Mortgage Loans with low Credit scores
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 need to be an IHDA Approved Lender. Suppose you’re interested in an IHDA mortgage. In that case, you should visit the official website of the Illinois Housing Development Authority or contact them directly for more information on their available programs, eligibility criteria, and application process.
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. Illinois Housing Development Authority and Down Payment Assistance Programs do not have a maximum loan limit required. Seller concessions allowed up to 6% on FHA and 4% on VA loans. Manual Underwriting is allowed.
One to four-unit owner occupant properties. Gustan Cho Associates are experts in assisting first time home buyers. Gustan Cho Associates is a mortgage broker licensed in 48 states with over 160 wholesale mortgage lenders.
Gustan Cho Associates,Empowered by NEXA Mortgage, LLC NMLS 1660690 has dozens of wholesale mortgage lenders with no overlays on government and conforming loans. Please reach out to us at 800-900-8569 or text us for faster response. Or email us at gcho@gustancho.com. The team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays. Purchase your home with us, click here
