IHDA Loans & Down Payment Assistance
The Illinois Housing Development Authority offers several mortgage programs for borrower assistance.
Opening Doors Program
A no monthly payment, forgivable down payment assistance loan, no repayment unless sold or refinanced before 5-year forgiveness period.
- Repayment: the assistance does not need to be repaid (unless you sell or refinance before 5 years of ownership).
- Assistance: $6,000.
- Forgiveness: the assistance is forgiven every month, which can be used to pay your down payment, closing costs, or both.
- Loan Type: It is available with conventional, VA, FHA, or USDA loan types.
- 2nd Mortgage: The down payment assistance comes in the form of a second mortgage; you will not receive a statement or have to make monthly payments.
- Available: You do not need to be a first-time home buyer to use the program.
Requirements:
- Must be purchasing a primary residence, taking ownership within 60 days of closing.
- Credit Score 640 and higher.
- Home to be purchased must be located in Illinois.
- Borrower’s income and home purchase price to fall within the current income and purchasing limits.
- Borrower to contribute a minimum of 1% of the sale price or $1,000 (whichever is greater).
- Borrower’s debt-to-income ratio lower than 45%.
IHDAccess Forgivable
A no monthly payment, forgivable down payment assistance loan, no repayment unless sold or refinanced before 10-year forgiveness period.
- Repayment: the assistance does not need to be repaid (unless you sell or refinance before 10 years of ownership).
- Forgiveness: the assistance is forgiven every month, which can be used to pay your down payment, closing costs, or both.
- Assistance: You will receive $6,000 in assistance, which can be used to pay your down payment, closing costs, or both.
- Loan Type: It is available with conventional, VA, FHA, or USDA loan types.
- 1st Mortgage: All IHDA programs come with a 30-year fixed rate mortgage. This finances the majority of your home purchase.
- 2nd Mortgage: The down payment assistance comes in the form of a second mortgage; you will not receive a statement or have to make monthly payments.
- Available: You do not need to be a first-time home buyer to use the program.
Requirements:
- Must be purchasing a primary residence, taking ownership within 60 days of closing.
- Credit Score 640 and higher.
- Home to be purchased must be located in Illinois.
- Borrower’s income and home purchase price to fall within the current income and purchasing limits.
- Borrower to contribute a minimum of 1% of the sale price or $1,000 (whichever is greater).
- Borrower’s debt-to-income ratio lower than 45%.
IHDAccess Deferred
A no monthly payment, deferred down payment assistance loan, payment is due when you sell or refinance.
- Repayment: The assistance does not need to be repaid until one of the following “events” take place (whichever comes first):
- The home is sold,
- The home is refinanced,
- 30 years have elapsed.
- Assistance: You will receive 5% of the purchase price up to $7,500 in assistance, which can be used to pay your down payment, closing costs or both.
- Loan Type: It is available with conventional, VA, FHA, or USDA loan types.
- 1st Mortgage: All IHDA programs come with a 30-year fixed rate mortgage. This finances the majority of your home purchase.
- 2nd Mortgage: The down payment assistance comes in the form of a second mortgage; you will not receive a statement or have to make monthly payments.
- Available: You do not need to be a first-time home buyer to use the program.
Requirements:
- Must be purchasing a primary residence, taking ownership within 60 days of closing.
- Credit Score 640 and higher.
- Home to be purchased must be located in Illinois.
- Borrower’s income and home purchase price to fall within the current income and purchasing limits.
- Borrower to contribute a minimum of 1% of the sale price or $1,000 (whichever is greater).
- Borrower’s debt-to-income ratio lower than 45%.
IHDAccess Repayable
A zero-interest repayable down payment assistance loan, monthly repayment is required.
- Repayment: The assistance is repaid monthly over the course of 10 years. There is 0% interest, and you will receive a separate statement for your 1st and 2nd mortgage.
- Assistance: You will receive 10% of the purchase price up to $10,000 in assistance, which can be used to pay your down payment, closing costs, or both.
- Loan Type: It is available with conventional, VA, FHA, or USDA loan types.
- 1st Mortgage: All IHDA programs come with a 30-year fixed rate mortgage. This finances the majority of your home purchase.
- 2nd Mortgage: All IHDA programs do not carry interest, this program requires a monthly payment in addition to your 1st mortgage payment for 10 years, make sure you budget.
- Available: You do not need to be a first-time home buyer to use the program.
Requirements:
- Must be purchasing a primary residence, taking ownership within 60 days of closing.
- Credit Score 640 and higher.
- Home to be purchased must be located in Illinois.
- Borrower’s income and home purchase price to fall within the current income and purchasing limits.
- Borrower to contribute a minimum of 1% of the sale price or $1,000 (whichever is greater).
- Borrower’s debt-to-income ratio lower than 45%.