The "Welcome Home Illinois" program for first-time home buyers will provide $7,500 in down-payment aid with interest rates as low as 3.99 percent for a 30-year fixed rate mortgage, according to a statement Gov. Pat Quinn announced.
"'Welcome Home Illinois will provide more opportunities for everyday people across Illinois to have their chance at homeownership,'" Quinn said. "
The program allows first-time buyers or anyone who hasn't owned a home in the last three years in Illinois to meet the qualifications for down payment assistance.
Eligible borrowers' incomes must not exceed 140 percent of the area median income (AMI), or $106,120 for a family of three or more in Cook County and $82,915 for a family of three or more in Springfield. The home buyer must also have a credit score of at least 640.
The program offers a forgivable loan of $7,500 that is secured by a second mortgage to help with down payment or closing costs. The borrowers must contribute the greater of one percent of the overall purchase price or $1,000 toward the down payment.
"Welcome Home Illinois" is open to qualified Illinois first-time homebuyers on a first-come, first-served basis. The program is funded through Illinois Jobs Now! and the Illinois Affordable Housing Trust Fund.
Information about the program and a list of lenders are available at welcomehomeillinois.gov.