Down Payment Assistance in Illinois

Looking for down payment assistance in Illinois? The Illinois Housing Development Authority (IHDA) offers a great program that not only provides down payment assistance but also below-market interest rates. Commonly known as an IHDA Loan, this could be the perfect option for you. 

In this article, we’ll take a look at three different types of down payment assistance and what below-market interest rates mean for you. 

Forgivable Down Payment Assistance in Illinois 

IHDA Loans offer up to $6,000 in forgivable assistance. Forgivable down payment assistance means that the money is a gift that does not have to be repaid. 

• 4% of the purchase price, up to $6,000 
• 30-year fixed-rate mortgage
• For all mortgage types, including FHA, VA, and more

Deferred Down Payment Assistance in Illinois

Deferred down payment assistance means that you will need to repay the money- but as an interest-free loan. IHDA Loans offer up to $7,500 in deferred assistance. 

• Repayment occurs when you sell your home, refinance, or pay off your mortgage 
• 5% of the purchase price, up to $7,500
• 30-year fixed-rate mortgage
• For all mortgage types, including FHA, VA, and more

Repayable Down Payment Assistance in Illinois

In Illinois, you can receive up to $10,000 in repayable down payment assistance. Repayable assistance is an interest-free loan from IHDA. 

• Repaid monthly over a 10-year period
• 10% of the purchase price, up to $10,000
• 30-year fixed-rate mortgage
• For all mortgage types, including FHA, VA, and more

The Whole Picture

An IHDA Loan offers both down payment assistance and below-market interest rates. So, not only are your upfront costs lower but your monthly payment is too. In short, a lower interest rate means you can qualify for a higher purchase price because your monthly payment will still be within the affordable range. 

IHDA Loans come with credit score, purchase price, and income restrictions, so be sure to talk to a mortgage banker as soon as possible to find out if you qualify. For those who do, so many doors have been opened to you!