1st home illinois mortgage program

Big news for first-time homebuyers in specific counties in Illinois!

If you’re looking to buy your first home in the counties of Boone, Cook, DeKalb, Fulton, Kane, Marion, McHenry, St. Clair, Will, or Winnebago, then you can now apply for the IHDA’s 1st Home Illinois loan program.

The 1st Home Illinois program offers competitive rates and down payment assistance for first-time homebuyers, veterans, and anyone who hasn’t owned a home in within the last three years. This program encourages and makes buying a home within reach for many first-time homebuyers.

Now that interest rates are at historic lows and rents have skyrocketed, buying a home with 1st Home Illinois seems like a no-brainer.

But what advantages does the 1st Home Illinois program offer to applicants?

And how do you qualify for one? Is it difficult?

All of these are good questions and will be answered below.

1st Home Illinois Benefits

Illinois Housing Development Authority (IHDA) loans are designed to be streamlined, making the loan process much simpler for first-time homebuyers. This is already a benefit in and of itself, but the 1st Home Illinois program offers much more.

The benefits of the 1st Home Illinois programs offers:

  • Down Payment Assistance: 1st Home Illinois can supply buyers with up to $7,500 to help bolster a down payment on a home. This money can also be used to cover closing costs if the buyer wants to.
  • 30-year FRM: The 1st Home Illinois program is offered as a 30 year fixed-rate mortgage. This means your interest rate and monthly payments will stay the same over the course of your term. First-time homebuyers are attracted to this option because it gives them time to pay off their mortgage. This also gives borrowers access to competitive interest rates to make their monthly payments more affordable.
  • Flexibility: The third advantage of the 1st Home Illinois program is that there are a variety of options available to customize your loan as needed. It can also be used for multiple types of mortgages, such as a conventional, FHA, USDA, and VA loan.

Wow! That’s a lot of good news for homebuyers in Illinois. But what about the qualifications?

1st Home Illinois Qualifications

Just like any other mortgage program, the 1st Home Illinois program has a set of qualifications that need to be met in order to make use of it. As helpful as the program is, you still need to follow the guidelines put in place by the IHDA.

In order to qualify for the 1st Home Illinois program, here’s what you’ll need to know:

  • Location: In order to be eligible for the 1st Home Illinois program, a home must be in the Illinois counties of Boone, Cook, DeKalb, Fulton, Kane, Marion, McHenry, St. Clair, Will, or Winnebago.
  • Number of Units: One and/or two unit properties are the only types that can bought with this program.
  • Type of Buyer: In order to qualify, you must be a first-time homebuyer, a veteran, or you haven’t owned a home during the last three years (within the counties mentioned).
  • Finance: Borrowers will also be required to contribute either $1,000 or 1% of the purchase price of the home (determined by whichever is greater).
  • Income & Purchase Price: The IHDA has Income and Purchase price limits that need to be followed. You can find the limits from the IHDA here.
  • Credit: The IHDA also has credit requirements that need to be met for the 1st Home Illinois program, which needs to be 640 or above.
  • Residence: The 1st Home Illinois program can only be used on a home that you intend to use as your primary residence.
  • Counseling: The IHDA also requires you to take a homeownership counseling course. This course is available for in-person and online classes. If your credit score does not meet the minimum requirement, counseling is offered to those to help strengthen your score and prepare you for your homeownership.

That’s certainly a large amount of requirements, but they’re not impossible to overcome. Just like any other mortgage program, you can clear these obstacles with proper planning and patience.

Now, if you are interested, you’re probably wondering, how do you apply?

Are there other expenses or fees within this process?

Again, we have all the answers to your questions!

How do I apply?

Many lenders have IHDA loans available for applicants to take advantage of.

However, keep in mind ONLY applicants who are first-time homebuyers, veterans, or anyone who hasn’t owned a home within the last three years are qualified to apply.

If you are interested in applying, find a top-performing lender near you so they can appropriately assist you on landing your dream home.

Luckily for you, Neighborhood Loans is specialized and familiar with helping families finance an IHDA loan.

Stop by today and start a mortgage application to get this process started!

Before heading over, make sure you bring the following paperwork and have your personal information on hand, so they can accurately determine your eligibility.

Are there other expenses?

As mentioned before, an advantage using this program offers down payment assistance of $7,500.

This amount does not need to be paid back, however, you need to live in the home for a minimum of five years.

If you were to sell your home before the five-year mark, a portion of the down payment will need to be repaid.

As for closing costs, you will need to fund this expense on your own.

Or if you would like, use the down payment assistance towards your closing costs.

Typically, closing costs include the following: title company closing fee, attorney fees, and title and insurance policy fees.

These charges are the final stretch of your mortgage process and seals the deal on your real estate transaction.

Before the keys are handed over, these expenses must be handled.

Fortunately, your lender will be able to estimate your closing costs to give you a better idea of what you can expect.

If you are wondering what else happens on closing day, here’s everything you need to know.

Also, nn February 1st, 2018, The Illinois Housing Development Authority (IHDA) rolled out THREE new programs that helps people statewide with limited income purchase a home.

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