Down Payment Assistance Programs
Programs are designed to assist buyers to purchase homes primarily for primary residences. There are currently NO assistance programs for investors or the purchase of investment properties or second homes. ONE important NOTE that needs to be made is that buyers CAN NOT directly apply to the assistance provider for the funds being granted. Buyers must apply with a participating lender and the lender applies for the assistance as part of the financing process. Some programs have set interest rates and other programs allow the lender to set the interest rate based on current market conditions. Some programs have minimum credit score requirements and other programs defer to the lender’s guidelines. So working with a lending team that specializes in the origination, processing, underwriting and closing of these types of programs is crucially important.The BBMC Lending Team specializes in these programs and has the unique benefit of offering an extensive array of programs in Illinois.
Additional requirements for these programs include the completion of a pre-purchase home buying class and the receipt of a home buying certificate. some program require an HUD approved eight hour class and others will allow the completion of an on-line class. Please consult with someone on our team to determine what class you need to complete.
Illinois Housing Development Authority (IHDA)
Applicable to all IHDA programs:
Minimum credit score of 640, Max DTI 45%. Minimum borrower contribution greater of $1,000 or 1%. 1-2 unit Owner Occupied properties ONLY. Conventional loan with reduced private mortgage insurance costs. May be used with VA, FHA, USDA, and Conventional. Purchase Price limits 1unit – 336,706.20; 2 unit – $431.033.40. Household income eligibility requirements: Regardless of household size -$94,800; Grundy county: $98,400
1st Home Illinois
$7,500 – 5 Year recapture. First time home buyer (targeted area buyers & veteran exempt); max 45% DTI. Cook, Marion and St. Clair counties ONLY.
IHDA Access – Three Options Available
DOES NOT have to be a first time home buyer; Available in Illinois no county or area restrictions New construction allowed.
OPTION ONE: 4% of purchase price up to $6K Max, 10 Year recapture
OPTION TWO: 5% of purchase price up to $7500, no payments – FULL amount repaid when home is sold, refinanced or mortgage balance paid in full.
OPTION THREE: 10% of purchase price up to $10,000. Repayable at 0% over 10 years.
Optional MCC available
Up to 5% of loan amount. 3 year recapture; no minimum borrower contribution. Qualified income eligible; Does not need to be a First Time Buyer; 45% DTI FHA; 50% DTI Conventional. Cook, DuPage, Kane, Lake, and Will: 1-2 person household-$79,432, 3+ household-$91,347 Grundy county: $81,300/$93,495 Kendall: 89,800/$103,270. Minimum credit score 640. Cook & Lake counties in their entirety; several cities in Will, Kane, Kendall, DuPage, Kankakee counties. FHA, VA, or Freddie Conventional; applicable household income includes borrower and anyone secondarily liable on note; 1-4 unit owner occupied; minimum borrower contribution defers to first mortgage type requirement.