Welcome Home Heroes

Welcome Home Heroes financing package

Launched to honor those who sacrifice to safeguard our freedom, Welcome Home Heroes is open to all qualified Illinois veterans, active military personnel, reservists and Illinois National Guard members.

The Welcome Home Heroes homebuyer financing package includes:
• a $10,000 forgiveable loan over two years for down payment and closing cost assistance
• a 30-year fixed rate mortgage that has an affordable interest rate
• an optional mortgage credit certificate to reduce federal income tax liability.

Eligibility

• Veterans (who need not be first-time homebuyers)
• Active military personnel, reservists and Illinois National Guard members (must be first-time homebuyers)
• Buyers must qualify based on income and purchase price limits.

How to apply

Interested buyers must apply through a lender in their area. The program only applies to 1-2 unit residential properties in the State of Illinois purchased as a primary residence. The new loan builds on the existing affordable home loan, SmartMove, also available through IHDA's lenders.

How does the tax credit work?

A mortgage credit certificate (MCC) enhances the benefit of the federal homeowner mortgage interest deduction. Homeowners with the credit are allowed to use 20 percent of their annual mortgage interest as a direct federal tax credit, resulting in a dollar-for-dollar reduction of their annual federal income tax liability. The remaining 80 percent of their annual mortgage interest will continue to qualify as an itemized tax deduction.

 

For example:

Based off a $150,000 loan with a four percent interest rate:

 

  Without MCC With MCC
Income $55,000 $55,000
Mortgage interest deduction $5,952

$4,762 (80 percent of $5,952)

Taxable income $49,048 $50,238
Taxes paid @ 15 percent tax bracket $7,357 $7,536
MCC tax credit N/A

$1,190 (20 percent of $5,952)

Income tax due $7,357 $6,346
Tax savings N/A $1,011

 

For more information see Frequently Asked Questions in this section's Info Center.