DOWN PAYMENT/CLOSING COST ASSISTANCE

Saving for a down payment can be a difficult task for many low-income residents of Illinois. To help turn renters into buyers, the Illinois Housing Development Authority’s Affordable Housing Trust Fund Program offers low- and very low-income individuals help via down payment and closing cost assistance.

PARTICIPATING SPONSORS

While individual citizens are not directly eligible for Trust Fund financing, organiza­tions interested in expanding affordable housing throughout the state can compete for funding made available, in turn, to qualifying individuals. Eligible applicants may include groups such as governmental units, for-profit corporations or not-for-profit corporations. In addition, sponsors must show an administrative capacity to manage a home buying process, the capacity to administer a homebuyer coun­seling program and the ability to manage the rehabilitation process.

HELP FOR HOMEBUYERS

Through the program, qualified spon­sors can provide loans or grants up to $3,000 for low-income families and $5,000 for very low-income families to be used toward a down payment and closing costs. All homeowners are required to provide an equity contribu­tion based on how much they can afford, with a minimum personal contribution of $500. Buyers also must meet certain purchase price and income limits set forth by the federal government and are required to attend an approved homebuyer counseling program.

GETTING STARTED

Applications for Trust Funds are accepted three times each year and must meet certain criteria for eligibility.

For more information about eligibility, please call (312) 836-5244.