IHDA Student Loan Mortgage DPA Homebuyer Program

This Article Is About IHDA Student Loan Mortgage DPA Homebuyer Program

Gustan Cho Associates is excited to update our readers on down payment assistance programs available through the state of Illinois.

  • This blog details some new changes for the year 2021 with the IHDA program offered throughout the state of Illinois
  • Down payment assistance programs can help thousands of Illinois residents achieve homeownership
  • Saving for a down payment is one of the toughest hurdles when qualifying for a mortgage loan
  • With all the chaos going on throughout the global economy, saving money is next to impossible
  • And many residents in Illinois are feeling the impact of this pandemic
  • In this blog, we will detail a new program offered by IHDA surrounding student loan forgiveness as well as the other programs offered

In this article, we will detail and extensive cover and discuss the IHDA Student Loan Mortgage DPA Homebuyer Program.

What Is The IHDA Student Loan Mortgage Down Payment Assistance Home Purchase Program

First, it is important to understand what down payment assistance means.

  • Down payment assistance simply means a program will help you with money for the down payment and/or closing cost to purchase a home in a specific state
  • While there are national down payment assistance programs, most states also offer down payment assistance
  • The state-specific programs are put in place to boost the local economy
  • Helping residents achieve homeownership only stimulates the local economy by increasing localized spending
  • The Illinois Housing Development Authority or IHDA strives to make the mortgage process as streamlined as possible
  • It is their goal to help as many residents of Illinois achieve homeownership as possible
  • They estimated about 10% of all first-time homebuyers utilizing IHDA mortgage products

This is a substantial number and we expect this to continue to grow.

Types Of IHDA Student Loan Mortgage DPA Homebuyer Program

What products are available through the Illinois housing developing authority?

  • The “opening doors program” offers a safe affordable 30-year mortgage with a fixed interest rate and a 0% second mortgage for $6000 in down payment assistance and or closing costs
  • This $6000 is completely forgiven after five years
  • This program is only available in the state of Illinois
  • Many are not aware but this is available for first-time homebuyers as well as repeat home buyers

And recently DACA recipients or “dreamers” are eligible.

Illinois Smart Buy Home Purchase Mortgage Loan Program

IHDA also offers a “Smart Buy” program.

  • This program is set up to help borrowers who have student loan debt buy a house
  • Smart buy can help in two different ways
  • They offer $5,000 in down payment assistance that can be used for the down payment and/or closing costs
  • They also provide up to $40,000 in student loan relief
  • The total amount of student loans cannot exceed more than 15% of the purchase price or $40,000, whichever is lower
  • This program is available for first-time and non-first-time homebuyers and once again available for DACA recipients
  • The caveat to this program paying off student loans is the $40,000 or 15% of the purchase price must pay off your student loan in FULL
  • If you have more than $40,000 in student loan debt, you can pay off one student loan under $40,000
  • You cannot pay off a portion of a student loan, it must pay off the entire loan
  • This is a new program that we think is going to pick up quite a few borrowers

For more information, please call Mike Gracz on 630-659-7644.

IHDA Access Forgivable Mortgage Loan Program

IHDA “access forgivable”.

  • This is a loan that does not have to be repaid. 4% of the purchase price or $6,000, whichever is lower, can be used for assistance and down payment and/or closing cost
  • This amount is forgiven over 10 years
  • Each month that you make a payment less will be owed
  • This program is available for all mortgage agencies including FHA, VA, USDA, and Fannie Mae

Once again this program is available for both first-time homebuyers and repeat homebuyers throughout the entire state of Illinois.

IDHA Access Deferred Mortgage Loan Program

IDHA “access deferred”. This program will give you 5% of the purchase price up to $7,500 that can be
used for closing cost or down payment.

  • This is an interest-free loan that is deferred for the life of your mortgage
  • You don’t need to pay this loan back until you sell your house, refinance, or pay off your mortgage

This program is also available on all mortgage types. And is available for first-time homebuyers and non-first-time homebuyers.

IHDA Student Loan Mortgage DPA Homebuyer Program: Access Repayable

IDHA “access repayable”.

  • This program will give you the most down payment assistance available through IHDA
  • 10% of the purchase price or up to $10,000 in assistance is offered
  • This loan is paid back monthly over a ten-year period
  • Available on all FHA, VA, USDA, and Fannie Mae mortgage products

Keep in mind the second loan payment must be added to your debt to income ratio.

IHDA Student Loan Mortgage Guidelines

The minimum credit score is 640 for all IHDA mortgage programs.

  • Keep in mind the maximum debt to income ratio required for all IHDA programs is 45%
  • Even though agency guidelines allow you to go above 45%, IHDA does not
  • That is important when you are searching for a home

You must stay within your budget and below the 45% debt to income ratio.

Qualifying For A DPA Mortgage With A Five-Star Mortgage Company

We understand we threw a lot of information at you in this blog. For more information on Illinois Housing
Development Authority mortgage products, please call Mike Gracz on 630-659-7644. You may also email
mgracz@gustancho.com. We are available seven days a week to assist with your mortgage questions.
The residents of Illinois are taking advantage of these programs. The student loan forgiveness program is
one that we expect to see many borrowers use. This is a great program to help newer professionals
entering the workforce. Student loan debt can be a great barrier when qualifying for a mortgage. Please
reach out today and get on the path of homeownership!

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