Illinois DPA Mortgage Programs: 2026 Guide to Buying a Home With Little or No Money Down
Buying a home in Illinois can feel impossible when you’re trying to save for a down payment and closing costs at the same time. The good news: Illinois down payment assistance (DPA) programs can reduce — and sometimes nearly eliminate — your upfront cash to close.
At Gustan Cho Associates, we help Illinois homebuyers match the right mortgage (FHA, VA, USDA, or conventional) with the right DPA option — including IHDA’s statewide programs and select local grant programs when available.
In this updated guide, you’ll learn how Illinois DPA works, what IHDA offers right now, who qualifies, what happens if you sell or refinance, and how to apply.
What Are Illinois DPA Mortgage Programs?
“DPA” stands for Down Payment Assistance. These programs are typically offered through state, county, or city housing agencies to help cover:
These programs are designed to:
- Promote homeownership across the state
- Assist first-time and repeat homebuyers who have limited savings
- Help families buy now, instead of waiting years to save for a down payment
Illinois’s most popular DPA options are offered through the Illinois Housing Development Authority (IHDA). This trusted state agency partners with approved lenders like Gustan Cho Associates.
In 2026, IHDA continues to offer several flexible DPA programs that give borrowers up to $10,000 toward down payment and closing costs.
Illinois DPA Mortgage Programs — Check Eligibility
See if you qualify for IHDA, CHENOA, or local grants with no overlays.
How Do Illinois Down Payment Assistance Programs Work?
Every Illinois DPA mortgage program works differently, but the main goal is the same: to help you cover your down payment and sometimes your closing costs.
Here’s how it generally works:
- You apply for your mortgage with a lender participating in DPA programs (like Gustan Cho Associates).
- The DPA program provides a grant, forgivable loan, or deferred second mortgage covering your down payment or closing costs.
- Depending on the program, the assistance may be forgiven after several years or repaid when you sell or refinance.
Many Illinois homebuyers are surprised to learn that the monthly mortgage payment with DPA is often lower than rent — especially with rising rental prices across the state.
The 2025 IHDA Illinois DPA Mortgage Programs
The Illinois Housing Development Authority (IHDA) has many down payment assistance (DPA) options that cater to different financial needs. Let’s check out the most popular programs for 2025.
1. IHDA Access Forgivable Program
The IHDA Access Forgivable Program offers financial assistance amounting to 4% of the purchase price, with a maximum benefit of up to $6,000. This assistance is designed to be forgiven monthly over a 10-year span. No repayment will be required if the borrower maintains ownership of the home for the entire 10-year period. This program is helpful for people who plan to live in their homes for a long time.
This is one of the most flexible Illinois DPA mortgage programs since the funds are gradually forgiven. If you sell or refinance early, you’ll only repay the un-forgiven portion.
2. IHDA Access Deferred Program
The IHDA Access Deferred Program offers assistance amounting to 5% of the purchase price, with a maximum of $7,500. This program requires full repayment when the homeowner sells, refinances, or pays off their first mortgage, and it features a 0% interest rate, meaning no interest is charged throughout the repayment period. This option is ideal for borrowers who prefer to defer repayment until later.
This program gives you a 0% interest loan for down payment and closing costs. You won’t make monthly payments on it — repayment only happens at the end of the loan.
3. IHDA Access Repayable Program
The IHDA Access Repayable Program covers 10% of the purchase price, but it tops out at $10,000. This financial support is designed to be repaid over 10 years through equal monthly installments. The interest rate for this program matches that of the buyer’s first mortgage, making it an appealing option for those who require substantial help with closing costs.
This option offers the largest amount of assistance among the Illinois DPA mortgage programs, ideal for borrowers who can handle a small additional monthly payment in exchange for more upfront help.
For similar nationwide DPA options, check out our guide on Chenoa Fund Down Payment Assistance.
4. First HomeIllinois (Legacy Program)
While this program was phased out in most areas, it’s still worth mentioning for borrowers who may have seen it online. The First HomeIllinois program provided a $7,500 grant for first-time buyers that was fully forgiven after five years.
Although it’s no longer active in most counties, IHDA continues to launch new DPA programs with similar benefits — and Gustan Cho Associates can connect you with the latest versions in your area.
Who Qualifies for Illinois DPA Mortgage Programs?
Each Illinois DPA mortgage program has slightly different eligibility rules, but here are the general guidelines for 2025:
Credit Score Requirements
Most IHDA programs have a minimum credit score requirement of 640. If your score falls below this threshold, Gustan Cho Associates can assist you in quickly improving it. Often, making a few straightforward changes—such as paying down credit card balances or adding positive trade lines—can significantly raise your score, potentially allowing you to qualify.
Income Limits
- Each county has maximum income limits that vary based on family size and the loan program.
- For example, in Cook County, the limit is higher than in smaller counties because of the cost of living difference.
- Your loan officer will verify if your household income fits the specific program you’re applying for.
Occupancy Requirement
The property must be your primary residence to qualify for Illinois DPA mortgage programs. Properties designated solely for investment purposes or as vacation homes do not meet the eligibility criteria.
Loan Type
You can combine DPA funds with most types of mortgages:
- FHA Loans
- VA Loans
- USDA Loans (USDA needs approve/eligible findings per Guaranteed Underwriting System)
- Conventional Loans (Fannie Mae & Freddie Mac)
Homebuyer Education
IHDA mandates that prospective homebuyers complete either an online or in-person homebuyer education course prior to closing on a property. These courses are designed to help individuals grasp the responsibilities that come with homeownership and provide valuable insights on effectively managing their new mortgage.
First-Time Buyer in Illinois? Get Down-Payment Help
Explore forgivable, deferred, and repayable assistance options statewide.
Real Talk: Why Rent When You Can Buy With Illinois DPA Mortgage Programs?
Many Illinois renters don’t realize they could own a home for less than what they pay in rent.
Let’s look at an example:
Renting: $1,900/month for a 2-bedroom apartment in suburban Chicago.
Owning: $1,700/month for a 3-bedroom home using IHDA’s Access Forgivable program.
Using Illinois DPA mortgage programs covers your down payment and part of your closing costs, helping you step into homeownership faster.
Plus, as a homeowner, you build equity, enjoy stable payments, and gain tax benefits — instead of watching rent prices rise yearly.
What About Closing Costs?
One of the biggest concerns homebuyers have is closing costs, which are the fees paid at the end of the transaction.
Here’s the good news:
Most borrowers using Illinois DPA mortgage programs don’t have to come up with much money out of pocket for closing.
That’s because:
- Sellers can give credits (seller concessions) toward your costs.
- Mortgage lenders, like Gustan Cho Associates, can throw in some lender credits if you’re okay with a slightly higher interest rate.
Here are the maximum seller concessions allowed by loan type:
| Loan Type | Max Seller Concession |
| FHA & USDA | 6% |
| VA | 4% |
| Conventional (Primary/Second Home) | 3% |
| Conventional (Investment Property) | 2% |
When you combine seller credits, lender credits, and down payment assistance, many borrowers close with little to no money down.
Step-by-Step: How to Apply for Illinois DPA Mortgage Programs With Gustan Cho Associates
Getting started is easy — our loan officers handle the process from start to finish.
- Contact Gustan Cho Associates: Call 800-900-8569, text us, or email gcho@gustancho.com. We’ll review your situation and match you with the best Illinois DPA mortgage programs for your needs.
- Pre-Qualification & Credit Review: We’ll pull your credit, calculate your income, and determine your mortgage and DPA program eligibility.
- Select Your Program: Based on your goals and how long you plan to stay in your home, we’ll help you choose between Forgivable, Deferred, or Repayable assistance.
- Complete Homebuyer Education: We’ll guide you to the approved IHDA course and make sure your certificate is submitted correctly.
- Find Your Home & Close: Once approved, you can shop for your home with confidence — knowing your down payment and closing costs are already covered.
Our team at Gustan Cho Associates works evenings, weekends, and holidays to make your homeownership dream a reality.
How We Know
Our team works closely with homebuyers every day. We closely track IHDA program rules, lender bulletins, and county limit updates, ensuring we can match borrowers with the most current Illinois DPA options available at the time of application.
Special Program: Homes for Heroes
Gustan Cho Associates proudly participates in the Homes for Heroes Mortgage Program, offering financial incentives to:
- Active and retired military
- Law enforcement officers
- Firefighters and EMS
- Teachers and healthcare workers
This program can be combined with Illinois DPA mortgage programs to reduce the total cash needed to close even further.
Why Work With Gustan Cho Associates
Not all lenders offer the same DPA options. Many banks have overlays — extra rules that make it harder to qualify.
At Gustan Cho Associates, we’re a no-overlay lender, which means:
- We follow only the agency guidelines (FHA, VA, USDA, Fannie Mae, Freddie Mac).
- We can often approve loans that other lenders deny.
- We’re licensed in multiple states and available 7 days a week, even evenings and holidays.
We also have a team of credit experts who help you boost your score quickly if you’re just below the qualifying mark.
Closing-Cost Assistance for Illinois Buyers
Use DPA for down payment, costs, or both—learn what’s allowed.
Final Thoughts
Buying a home doesn’t have to feel impossible. With Illinois DPA mortgage programs, you can finally stop renting and start building equity — even if you don’t have money saved for a down payment.
At Gustan Cho Associates, we specialize in helping Illinois homebuyers find the best DPA program and mortgage combination for their goals.
Borrowers who need a five-star national mortgage company licensed in 50 states with no overlays and who are experts on Illinois DPA mortgage programs, please contact us 800-900-8569, text us for a faster response, or email us at alex@gustancho.com. .
We’re available seven days a week, evenings, weekends, and holidays to help you achieve homeownership.
Frequently Asked Questions About Illinois DPA Mortgage Programs:
For a complete list of updated FAQs, visit our Down Payment Assistance Resource Center.
Q: Do I have to be a First-Time Homebuyer to Qualify?
A: No. Many Illinois DPA mortgage programs are open to repeat buyers as long as you use the new home as your primary residence.
Q: Can I Use DPA with an FHA or VA Loan?
A: Yes! Most DPA programs work with FHA, VA, USDA, and conventional loans.
Q: What Happens if I Sell or Refinance Early?
A: If the assistance is forgivable, you may need to repay the un-forgiven portion based on how long you owned the home.
Q: How Much Assistance Can I Get?
A: Up to $10,000, depending on the program and your purchase price.
Q: Do DPA Programs Run Out of Money?
A: Yes, occasionally — IHDA programs are budget-based, so apply early in the year.
Q: Can I Qualify with a Score Below 640?
A: Gustan Cho Associates can help you improve your credit to reach eligibility quickly.
Q: Do I Need a Class to Qualify?
A: Yes, IHDA requires a homebuyer education course before closing.
Q: Can I Combine DPA with Seller Credits?
A: Absolutely. Many borrowers use both to cover almost all upfront costs.
Q: How Long Does the Process Take?
A: Usually 30–45 days, depending on your loan and DPA program.
Q: How do I Start?
A: Call 800-900-8569 or email gcho@gustancho.com today.
This article about “Illinois DPA Mortgage Programs For First Time Home Buyers” was updated on December 29th, 2025.
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