Buying a home in Illinois? These 3 programs offer money for down payment, closing costs
Illinois was recently named the third most affordable state to buy a home by one trade publication, but about a third of Land of Lincoln residents don’t own their home, according to the U.S. Census Bureau.
Not all who rent are looking to buy a home, as some students, military families or other generally transient people may prefer renting. But those who do plan to purchase a home in the near future can apply for down payment and closing cost assistance programs in Illinois.
The cost of buying a home is 3.75 times the typical annual income in Illinois, according to BestBrokers.com, a trade publication, and the state’s “abundant housing supply” helped land it in the third “most affordable” spot.
Housing prices in Belleville have increased 7.8% from March 2023 to March 2024, according to real estate website Redfin. The city’s median home sale price is $145,000, and 53% more homes were sold this March compared last. Much of the U.S., including Illinois, has seen real estate markets favor sellers in the last year. But southwestern Illinois may see a more balanced market in 2024, the BND previously reported.
Here’s what to know about down payment and closing cost assistance available in Illinois.
Illinois Housing Development Authority Access Forgivable
This program offers 4% of a home purchase price, up to $6,000, toward a down payment and closing costs. The sum is a loan that does not have to be repaid as long as you live in the home for at least 10 years.
The Access Forgivable program is available to first-time and repeat home buyers alike in any Illinois county, as long as they meet all of the following eligibility requirements:
Contribute $1,000 or 1% of the home’s purchase price, whichever is greater
Have a minimum credit score of 640
Live in the home as a primary residence
Complete homeownership education before closing (online and in-person options are available)
You can apply to the Access Forgivable program after contacting an Illinois Housing Development Authority mortgage lender.
Illinois Housing Development Authority Access Deferred
The Access Deferred loan is worth 5% of a home’s purchase price, up to $7,500, and is available to first-time and repeat buyers across Illinois. It can be used toward closing costs and a down payment.
This IHDA loan must be paid back, but it is interest-free and is deferred until you sell your home, refinance or pay off your mortgage in full. Like the Access Forgivable loan, there is a 640 minimum credit score requirement and income and purchase price limits.
Illinois Housing Development Authority Access Repayable
The Access Repayable program is an interest-free loan of 10% of a home’s purchase price, up to $10,000, repaid monthly over a 10-year period.
Illinois residents applying for the Access Repayable program must complete homeownership education, contribute $1,000 or 1% of the purchase price, live in the home as a primary residence and meet credit score, income and purchase price guidelines.
The Illinois Housing Development Authority has offered an Illinois HFA1 program in the past, but it was suspended in September.
In addition to these statewide programs, prospective homebuyers can also apply to local programs and credit unions that offer assistance. St. Clair County offers a Homebuyer Assistance Program that provides down payment and closing cost assistance to “eligible clients to purchase homes in eligible areas of St. Clair County.”
You can call 618-825-3226 for more information about St. Clair County’s program. Participants are required to complete homebuyer counseling.
