First Time Home Buyer Programs - Illinois

Across Illinois, quality affordable housing has become increasingly scarce for low-income households, and demand for affordable rental units continues to exceed supply.

The Illinois Housing Development Authority

The Illinois Housing Development Authority (IHDA) helps low and moderate income families become first-time homeowners in Illinois. The IHDA utilizes several initiatives and programs.

• IHDA finances mortgages through our partner banks for low- and moderate-income families. (temporarily suspended)
• IHDA finances local homebuyer programs throughout the state that are run by local non-profit organizations and municipalities.
• IHDA finances home repair programs with grants for low-income homeowners who need to bring their homes up to code.

 

Affordable Housing Trust Fund

The Illinois Affordable Housing Trust Fund (AHTF) helps create and fund affordable housing programs for low income families across the state. Each year, the AHTF allocates from $16 million to $20 million to to eligible sponsors and developers to help low income households.

Read more about the Illinois Affordable Housing Trust Fund

 

HOME Program

The Illinois Housing Development Authority runs the HOME Program statewide, with these goals:

• To expand the supply of decent and afford­able housing for renters and homeowners with low and very low incomes. Depending upon the program, people earning between 50 per­cent and 80 percent of a region’s median income will usually qualify for HOME-assisted housing.
• To strengthen the ability of state and local governments to design and implement local affordable housing strategies that (1) increase the stock of decent, reasonably priced dwellings, (2) weigh the unique demographic, economic and other features where housing is built and (3) provide affordable rental housing to low-income families.
• To extend and strengthen partnerships among all levels of government, the private sector and non-profit organizations in the production and operation of affordable housing in Illinois.

Read more about the Illinois HOME Program

 

Homebuyer Assistance Rehabilitation Program

The HOME Program offers down payment, closing cost, and rehabilitation assistance to low-income homebuyers. These homebuyers must make the purchased home their main place of residence and rehabilitate the home according to IHDA and HUD standards. Prospective homebuyers must take part in homeownership counseling to ensure they understand budgeting and personal financial management, home mainte­nance, the mortgage loan process, legal documents and obligations associated with buying a home. Prospective homebuyers must also develop options with mortgage lenders in case financial problems arise.

Read more about the Homebuyer Assistance Rehabilitation Program

 

Single-Family Owner-Occupied Rehabilitation Program

The HOME Program contributes funding to the Single-Family Owner-Occupied Rehabilitation (SFOOR) Program to help low-income Illinois homeowners is keeping up with neces­sary but costly repairs. Only non-profit organizations or units of local government are eligible for SFOOR funding. Homeowners selected by SFOOR grantees must have household incomes below 80 percent of the area median income.

Read more about the Single-Family Owner-Occupied Rehabilitation Program

 

Small Rental Properties Program

The Small Rental Properties Program (SRPP) helps local gov­ernments rehabil­itate rental properties with 11 or fewer units to increase or preserve the stock of low-income apartments, particularly in small rural communities. Governments are encouraged to structure their programs to meet specific, local rental rehabilitation needs.

Read more about the Small Rental Properties Program

 

Community Housing Development Organizations

Community Housing Development Organizations (CHDOs) are specially defined non-profits allowed to compete each year for a 15 percent HOME reserve. Certified as CHDOs by the Illinois Housing Development Authority, these organizations must meet certain HUD criteria:

• The provision of affordable low- and moder­ate-income housing as a stated purpose.
• Operation as a 501(c)(3) IRS tax-exempt organization.
• A commitment to affordable housing over time.
• The capacity to carry out HOME activities.
• The maintenance of low-income residents or their representatives on CHDO governing boards.

Read more about Community Housing Development Organizations

 

HOME Investment Partnership Programs

IHDA funds homebuyer assistance programs through local non-profit agencies and some municipalities. Through these programs, local agencies help homebuyers qualify for assistance under the HOME Program. These homebuyer assistance programs may provide the homebuyer some down payment, closing costs, and rehabilitation funding. Homebuyers must meet income restrictions based on household size, participate in pre-purchase counseling, and meet purchase limits set by HUD.

Read more about HOME Investment Partnership Programs

 

Other Local Illinois Home Loan Resources

Illinois also has several first time home buyer and other home loan programs available through city, county, and other state agencies. Find a local Illinois home buyer program that is right for you on the official Illinois HUD website.

 

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• A Guide for First Time Homebuyers
• How Much Home Can You Afford?
• First Time Homebuyer Financial Assistance
• $8,000 First Time Home Buyers Tax Credit
• Rural Single Family Home Loans
• USDA Rural Housing Repair and Rehab Loans
• Mutual Self-Help Housing Loan Program (Section 502)