This Article Is About Illinois DPA Mortgage Programs For Home Buyers

Gustan Cho Associates offers DPA Mortgage Programs for home buyers. Our Illinois DPA Programs are not just for first-time home buyers. Illinois DPA Programs for repeat buyers as well as first-time home buyers. Most people can afford the proposed new housing mortgage payments. With rents escalating throughout the state of Illinois, many times it a new mortgage payment is less than rental payments. Homebuyers with little to no down payment may qualify for Illinois DPA Programs on home purchases.

In this blog, we will discuss the various Illinois DPA Mortgage Programs.

What Are Illinois DPA Mortgage Programs

Illinois DPA Mortgage Programs are the city, county, and/or state programs. The purpose of down payment assistance programs is to promote homeownership. Illinois DPA Mortgage Programs may be similar or totally different from other DPA programs in other states.

IHDA is one of the most popular Illinois DPA Mortgage Programs. There are various Illinois DPA Mortgage Programs which some require no repayment. Some are grants where borrowers do not have to repay if they stay in their homes for a number of years. Iif the homeowners refinance their home loan or sell, the grant needs to be repaid. With our Illinois DPA Mortgage Programs, families can qualify to purchase a home instead of waiting until they have the down payment saved. 

IHDA Loan Program For Illinois First Time Home Buyers

Gustan Cho Associates Mortgage Group often gets inquiries on whether the IHDA Loan Program is a gift or a grant. The answer to this question is it depends on the particular loan program. With the First HomeIllinois mortgage program, the grant amount is $7,500. Under this loan program, the grant does not need to be paid back if the homeowner receiving this grant lives in the home purchase for a minimum of five years.

Repayment is required if the home is sold and/or refinanced during the first five years. In the Illinois Access Forgivable Mortgage Program, the amount of assistance is $6,000. Under this loan program, the grant does not need to be paid back if the homeowners do not sell and/or refinance during the first 10 years. If they sell and/or refinance during the first ten years, a portion of the grant, depending on how long the homeowner lived in the home, needs to be repaid back to IHDA. The Access Deferred Mortgage, homeowners need to repay back the grant when the first mortgage is paid off, the home is sold, or the home is refinanced.

With the Access Repayable Grant, the amount is $10,000 and needs to be repaid over a 10-year term. As you can see, there are various grant programs that offer grant forgiveness while others need to be repaid.

Eligibility Requirements On Illinois DPA Mortgage Programs

IHDA Loans require a minimum of a 640 credit score. Gustan Cho Associates offers other DPA Programs which have lower credit score requirements.

If borrowers do not meet the 640 FICO requirements, our experienced loan officers can work with borrowers in boosting credit scores to raise their credit scores to the qualifying 640 credit score. There are many quick fixes in boosting credit scores that do not take long. Gustan Cho Associates has various Illinois DPA Mortgage Programs that may best suit the borrower’s individual needs. Most DPA Programs have maximum income limit ceilings. FHA, VA, Conventional Loans need an approve/eligible per automated underwriting system. USDA needs approve/eligible findings per Guaranteed Underwriting System (GUS).

Sellers’ concessions and/or lender credit are allowed for closing costs.

Closing Costs

Most homebuyers do not have to worry about closing costs on home purchases. It is very common for home sellers to offer sellers concessions on home purchases. If seller’s concessions fall short, lenders can offer lender credit towards closing costs in lieu of a higher rate. Here are the allowable maximum seller’s concession credits allowed per loan program:

• FHA and USDA Loans allow 6% sellers concessions
• VA permits 4%
• Fannie Mae and Freddie Mac allow 3% on owner occupant homes and second homes
• For investment properties, maximum sellers concessions are 2% on conventional loans

Gustan Cho Associates are affiliate members of the Homes For Heroes Mortgage Program. Our Homes For Heroes Mortgage Loan Program offers financial incentives to our active/retired veterans, law enforcement officers, firefighters, EMS, and teachers. We also offer the popular CHENOA DPA Mortgage Program. For more information on down payment assistance loan programs, whether it is in Illinois or other states, please contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. We are available 7 days a week, evenings, weekends, and holidays.