Illinois REALTOR® Magazine 

Help Get Buyers Into A Home

Financing programs to get your buyers into a home

The spring homebuying season is upon us and there are a number of Illinois homebuyer assistance and mortgage financing programs available that could help get your buyers into a new home. From programs geared toward first-time buyers or veterans to federal loans for consumers buying in rural Illinois communities, there might be a financing option that fits your buyer.


picture of rural homeUSDA Rural Development Single Family Housing Guaranteed Loan Program

This federal program through the U.S. Department of Agriculture (USDA) assists low to moderate income consumers buying homes in eligible rural areas, including many counties in Illinois.

What does the program offer?

A 30-year fixed-rate loan with 100 percent financing, no monthly mortgage insurance and doesn’t require a down  payment. A one-time guarantee fee applies, but can be rolled into the loan amount. Eligible closing costs and lender fees may also be rolled into the loan or paid by the borrower.

Who is Eligible?

Borrowers who are buying a property in an eligible rural area and have a household income that does not exceed the income guidelines established for a particular county. There are flexible credit guidelines so those with non-traditional credit histories can apply and the program is not limited to first-time buyers. Buyers may have an income of up to 115 percent the median income for the area.

Which properties are covered?

Eligible properties include existing homes, new construction, modular homes, eligible condominiums, new manufactured homes and Planned Unit Developments (PUDs). There is no maximum purchase price; qualifying ratios are determined between a borrowers income and housing affordability.

Learn more: www.rurdev.usda.gov/HAD-Guaranteed_Housing_Loans

Source: U.S. Department of Agriculture


 

@HomeIllinois

A loan program offered by the Illinois Housing Development Authority (IHDA). The new @HomeIllinois is a safe, 30-year fixed rate mortgage with a suite of a la carte options so first-time buyers, repeat buyers or homeowners looking to refinance can customize the loan to fit their individual need.  The options you choose will determine the interest rate for your loan.

@HomeIllinois options include:

  • $5,000 down payment or closing cost assistance for buyers
  • Lender paid mortgage insurance for buyers
  • Federal tax credit certificate for first time buyers
  • Choice of FHA, VA, USDA or Conventional loan type

@HomeIllinois program requirements:

  • Contribute $1,000 or 1 percent of the purchase price, whichever is greater
  • Meet the income and purchase price limits
  • Meet the credit requirements
  • Live in the home as your primary residence
  • Complete homeownership counseling (online and in-person options available)

Learn more and get started today at:  www.athomeillinois.gov

Source: Illinois Housing Development Authority


picture of real estate agent with new home ownersFinally Home

A mortgage guarantee program offered through the Illinois State Treasurer’s Office offers borrowers a 10 percent mortgage guarantee to help them qualify for an affordable and sustainable loan.

What does the program offer?

For eligible borrowers, the program guarantees up to 10 percent of their qualifying loans. The goal is to help Illinois residents avoid predatory lenders and obtain affordable mortgages to purchase or refinance a home.

Who is Eligible?

Low- to moderate-income Illinois residents who otherwise might not be able to obtain a conventional mortgage. Borrowers must be documented Illinois income taxpayers. The homes being purchased or refinanced must be in Illinois.

Learn more: http://treasurer.il.gov/programs/finally-home/finally-home.aspx

Source: Illinois State Treasurer’s Office


 

 

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