Lending Programs

THIS INFORMATION IS NOW AVAILABLE ON

IHDAMortgage.org

Does your borrower meet the general criteria for a home loan but lacks the down payment? Because this happens far too often IHDA has created loan programs that provide down payment and closing cost assistance for borrowers who would otherwise qualify for a mortgage.

As long as your borrowers meet the income and purchase limits, have a good credit score, and can make the monthly payments, there’s a good chance we have a program that can help. Specific requirements for each program are included below.

Across Illinois nearly 10% of all first-time homebuyers utilize IHDA MORTGAGE products to help with the additional leverage needed to bridge the gap of homeownership. In an effort to continue to grow on the state’s success in serving historically underrepresented communities, we want to announce the Opening Doors and SmartBuy programs which provide further opportunity to increase generational wealth and build homeownership accessibility.

The Illinois HFA1 Program is suspended as of Sept. 12, 2023

HFA1 Highlights

IHDA Mortgage Illinois HFA1 will provide:

  • a 0% interest 2nd mortgage for $10,000 in in down payment and/or closing cost assistance. This 2nd loan is offered as an interest-free loan, deferred for the life of your mortgage – you don’t need to repay until you sell your house, refinance, or pay off your mortgage
  • a safe, affordable 30-year 1st mortgage with an affordable fixed interest rate and
  • Available for all mortgage types, including FHA, VA, USDA, FNMA HFA Preferred and FHLMC HFA Advantage

HFA1 Requirements

  • First-Time and Non First-Time Homebuyers are allowed
  • All Illinois counties are eligible
  • Contribute $1,000 or 1 percent of the purchase price, whichever is greater
  • Meet the income and purchase price limits
  • Meet the Credit Requirements
  • Live in the home as primary residence
  • Complete homeownership education prior to close (online and in-person options available)
  • New construction is allowed

View Marketing Materials

Access Forgivable Highlights

  • 4% of the purchase price up to $6,000 in assistance for down payment & closing costs, forgiven monthly over 10 years – it’s a gift that does not have to be repaid
  • 30-year, fixed rate mortgage with an affordable interest rate
  • Available for all mortgage types, including FHA, VA, USDA, FNMA HFA Preferred and FHLMC HFA Advantage
  • Available to first-time and repeat homebuyers statewide

Access Forgivable Requirements

  • Meet the household income and purchase price limits
  • Minimum credit score of 640 is required
  • Both new construction and existing homes are eligible
  • First-Time and Non First-Time Homebuyers are allowed
  • All Illinois counties are eligible
  • Contribute $1,000 or 1 percent of the purchase price, whichever is greater
  • Live in the home as primary residence
  • Complete homeownership counseling prior to close (online and in-person options available)

View Marketing Materials

Access Deferred Highlights

  • 5% of the purchase price up to $7,500 in assistance for down payment & closing costs offered as an interest-free loan, deferred for the life of your mortgage – you don’t need to repay until you sell your house, refinance, or pay off your mortgage
  • 30-year, fixed rate mortgage with an affordable interest rate
  • Available for all mortgage types, including FHA, VA, USDA, FNMA HFA Preferred and FHLMC HFA Advantage
  • Available to first-time and repeat homebuyers statewide

Access Deferred Requirements

  • Meet the household income and purchase price limits
  • Minimum credit score of 640 is required
  • Both new construction and existing homes are eligible
  • First-Time and Non First-Time Homebuyers are allowed
  • All Illinois counties are eligible
  • Contribute $1,000 or 1 percent of the purchase price, whichever is greater
  • Live in the home as primary residence
  • Complete homeownership counseling prior to close (online and in-person options available)

View Marketing Materials

Access Repayable Highlights

  • 10% of the purchase price up to $10,000 in assistance for down payment & closing costs offered as an interest-free loan – repaid monthly over a 10 year period
  • 30-year, fixed rate mortgage with an affordable interest rate
  • Available for all mortgage types, including FHA, VA, USDA, FNMA HFA Preferred and FHLMC HFA Advantage
  • Available to first-time and repeat homebuyers statewide

Access Repayable Requirements

  • Meet the household income and purchase price limits
  • Minimum credit score of 640 is required
  • Both new construction and existing homes are eligible
  • First-Time and Non First-Time Homebuyers are allowed
  • All Illinois counties are eligible
  • Contribute $1,000 or 1 percent of the purchase price, whichever is greater
  • Live in the home as primary residence
  • Complete homeownership counseling prior to close (online and in-person options available)

View Marketing Materials

CLOSED FOR NEW LOCKS AS OF 5/21/2021

SmartBuy Highlights

Don’t let student loans stop you from buying a home. IHDA Mortgage SmartBuy can help!

  • offers $5,000 in assistance that you can use toward down payment or closing costs
  • provides up to $40,000 in assistance for student loan debt relief (total educational assistance cannot exceed more than 15% of the purchase price or $40,000, whichever is lower)
  • DACA Recipients (Dreamers) are eligible!
  • FNMA loan types only

SmartBuy Requirements

  • Borrowers must have at least $1,000 in student loan debt
  • The debt must be in the borrower’s name for the borrower’s student loans
  • First-Time and Non First-Time Homebuyers are allowed
  • Must have the debt from an eligible educational institution is an accredited public, nonprofit, or proprietary (privately owned profit-making) college, university, vocational school, or other postsecondary educational institution
  • Pay off at least one borrower’s full remaining student loan balance at loan close – no partial payoff of any borrower’s loans is permitted.
  • All Illinois counties are eligible
  • Contribute $1,000 or 1 percent of the purchase price, whichever is greater
  • Meet the income and purchase price limits
  • Minimum credit score – 640 for all loan types
  • Live in the home as primary residence
  • Complete homeownership education prior to close (online and in-person options available)
  • New construction is allowed

View Marketing Materials