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 payments assistance for first-time homebuyers, veterans, and anyone who hasn’t owned a home in within the last three years. This is a welcome addition that is helping to put buying a home within reach of many first-time homebuyers.
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 gives first-time homebuyers time to pay off the 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 it can be used for multiple types of mortgages. 1st Home Illinois can be used on conventional, FHA, USDA, and VA loans.
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.
- 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.
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 planning and patience.