There’s good news for first-time homebuyers in Illinois. National, state, and county-specific programs are available to help make your homeownership dreams a reality.
The Zimmerman Group’s agents have compiled a list of resources for first-time homebuyers in Illinois. It’s the perfect starting point on your journey to find financing solutions that align with your personal goals.
National First-Time Homeownership Options
Federal Housing Administration (FHA) Loans
FHA loans are among the most commonly used mortgages for first-time homebuyers. With less demanding qualification standards it’s not hard to see why. FHA loans typically allow lower FICO scores than conventional loans, smaller down payments, and a more lax debt-to-income ratio.
✔ Low down payment
✔ Low credit score
VA Loans
VA loans are guaranteed by the U.S. Department of Veteran Affairs and are available to individuals with active military status or veteran status and their surviving spouses. VA loans don’t require a minimum down payment, a minimum credit score, or mortgage insurance which makes them an affordable option for those who qualify.
✔ Military
✔ Low down payment
✔ Low credit score
U.S. Department of Agriculture (USDA) Loans
USDA loans are available to rural and some suburban homebuyers. The USDA liberally defines “rural” so that many small towns and suburban areas will qualify. These loans require zero-down payment, offer competitive rates, and lenient income requirements.
✔ Rural homeowners
✔ Low down payment
Illinois First-Time Homeownership Programs
Illinois offers a variety of programs to help first-time homebuyers achieve their dreams of homeownership.
IHDA Opening Doors
The IHDA’s Opening Doors program offers an affordable fixed-rate 30-year first mortgage. This program is available in all Illinois counties to applicants who meet the income and purchase price requirements.
✔ Low down payment
✔ Low credit score
✔ Fixed-rate
IHDA SmartBuy
The IHDA’s SmartBuy program is designed to make homeownership attainable for low- to moderate-income borrowers with student loan debt. The program is available in all Illinois counties to applicants who meet income and purchase price limits.
✔ Low down payment
✔ Low credit score
✔ Fixed-rate
IHDAccess Forgivable
The IHDAccess Forgivable program provides borrowers with cash assistance of 4% of the home’s purchase price (up to $6,000) to help cover the down payment or closing costs. As the name suggests, the assistance is forgivable based on monthly deductions over 10 years.
✔ Down payment assistance
✔ Closing cost assistance
✔ Fixed-rate
IHDAccess Deferred
The IHDAccess Deferred program gives borrowers down payment or closing cost assistance for 5% of the purchase price (up to $7,500). The assistance does not need to be repaid until you sell, refinance, or pay off your mortgage.
✔ Down payment assistance
✔ Closing cost assistance
✔ Fixed-rate
IHDAccess Repayable
The IHDAccess Repayable program will give borrowers up to 10% of the purchase price (up to $10,000) to be used toward down payment or closing costs. This assistance must be repaid over a 10 year period.
✔ Down payment assistance
✔ Closing cost assistance
✔ Fixed-rate
County and City Specific Homeownership Programs
There are a variety of regionally specific first-time homeowner lending programs available in Illinois. For information about which programs are available in your area contact one of the Zimmerman Group’s experienced agents or visit the United States Department of Housing and Urban Development’s (HUD) website.
What’s Next?
With your finances secured it’s time for the fun to begin. Learn How to Pick the Perfect Location When Buying Your Home when you’re starting your home search.
