State and Federal Loan Programs
The following specialized mortgage loan programs can
help prospective buyers get better financing. Your
can provide you with mortgage information, discuss
financing options and recommend loan sources to help you
get into your new home! Programs for veterans.
The new @HomeIllinois is a safe, 30-year fixed rate mortgage with a suite
of a la carte options so first-time buyers, repeat buyers or homeowners
looking to refinance can customize the loan to fit their individual need. The
options you choose will determine the interest rate for your loan.
@HomeIllinois Options Include:
- $5,000 down payment or closing cost assistance for buyers
- Lender paid mortgage insurance for buyers
- Federal tax credit certificate for first time buyers
- Choice of FHA, VA, USDA or Conventional loan type
@HomeIllinois Program Requirements:
- 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 your primary residence
- Complete homeownership counseling (online and in-person options available)
Call 1-877-456-2656 to speak with IHDA's Homeownership Team
Source: Illinois Housing Development Authority
USDA Rural Development Single Family Housing Guaranteed Loan Program
This federal program through the U.S. Department of Agriculture (USDA) assists low to moderate income consumers buying homes in eligible rural areas, including many counties in Illinois.
What does the program offer?
A 30-year fixed-rate loan with 100 percent financing, no monthly mortgage insurance and doesn’t require a down payment. A one-time guarantee fee applies, but can be rolled into the loan amount. Eligible closing costs and lender fees may also be rolled into the loan or paid by the borrower.
Who is Eligible?
Borrowers who are buying a property in an eligible rural area and have a household income that does not exceed the income guidelines established for a particular county. There are flexible credit guidelines so those with non-traditional credit histories can apply and the program is not limited to first-time buyers. Buyers may have an income of up to 115 percent the median income for the area.
Which properties are covered?
Eligible properties include existing homes, new construction, modular homes, eligible condominiums, new manufactured homes and Planned Unit Developments (PUDs). There is no maximum purchase price; qualifying ratios are determined between a borrowers income and housing affordability.
Learn more: www.rd.usda.gov/HAD-Guaranteed_Housing_Loans
Source: U.S. Department of Agriculture
A mortgage guarantee program offered through the Illinois State Treasurer’s Office offers borrowers a 10 percent mortgage guarantee to help them qualify for an affordable and sustainable loan.
What does the program offer?
For eligible borrowers, the program guarantees up to 10 percent of their qualifying loans. The goal is to help Illinois residents avoid predatory lenders and obtain affordable mortgages to purchase or refinance a home.
Who is Eligible?
Low- to moderate-income Illinois residents who otherwise might not be able to obtain a conventional mortgage. Borrowers must be documented Illinois income taxpayers. The homes being purchased or refinanced must be in Illinois.
Learn more: http://treasurer.il.gov/programs/finally-home/finally-home.aspx
Source: Illinois State Treasurer’s Office
Since 1934, mortgages insured through the Federal Housing Administration (FHA) have helped millions of people buy a home. Because FHA loans are insured by the federal government, they offer competitive interest rates, down payments as low as 3.5%, and are an option for buyers with less than perfect credit. FHA loans can be used to buy a home, finance repairs to an existing home or for seniors aged 62 or older, be used for a reverse mortgage.
Learn more: http://www.hud.gov/buying/loans.cfm | Find the FHA loan limits for your area.
Local City or County Programs
Check with your local city or county government. For example, the HOME Program adminstered both by HUD helps homebuyers in participating Illinois cities and counties with down payment and closing cost assistance.
Programs for Veterans
Dream Makers National Down Payment Assistance Program
Dream Makers is a national down payment assistance program for first-time home buyers of modest means who help defend our nation. Grants are eligible for active duty and veteran military personnel as well as current employees of the Department of Defense and Department of Homeland Security. Grants can be used in conjunction with VA, FHA, and conventional mortgages from any lender in the nation. Applications can be submitted online at www.penfedfoundation.org/DreamMakers. Download an informational flyer (pdf).
Administration (VA) Home Loan Program
VA can guarantee a portion of a loan made by a
private lender to help you buy a home, a
manufactured home, a lot for a manufactured
home, a condominium unit, or a unit in a
cooperative dwelling. VA also guarantees loans
for building, repairing, and improving homes. If
you have a VA mortgage, the VA can help you
refinance your loan at a lower interest rate.
You may also refinance a non-VA loan. Certain
disabled veterans and military personnel can
receive grants to adapt or acquire housing
suitable for their needs. www.homeloans.va.gov