The Illinois Home Start Loan Program helps to make homeownership affordable for homebuyers wishing to purchase their first home. The Program offers two loans: the Home Start 30 Year Fixed Rate Loan and an optional Home Start Down Payment Assistance Loan.
HOME START: 30 Year Fixed Rate Loan
What you get:
• 30 year loan
• Fixed interest rate
• Loan insured by the Federal Housing Administration (FHA)
• Option to use in conjunction with the Home Start Down Payment Assistance Loan program
Qualifications:
• First time homebuyer (Military Veterans are exempt from this requirement)
• Minimum credit score of 640
• Must be able to contribute 1 percent or $1,000 of the purchase price from their own savings
• Homeownership counseling is required
Restrictions:
• Income and purchase price limits apply
• May not be used with a Mortgage Credit Certificate (MCC)
HOME START Down Payment Assistance Loan
How it works:
The Home Start Down Payment Assistance Loan helps give first time homebuyers access to additional funds upfront to help with the down payment. Subsequently, the homebuyer will see a 0.5 percent increase on the current rate for the first loan.
What you get:
• 10 year forgivable loan
• 0% interest rate
• Non-amortizing
• Maximum loan amount is 3 percent of the purchase price up to $6,000
Qualifications:
• Must qualify and secure a Home Start 30 Year Fixed Rate Loan
• First time homebuyer (Military Veterans are exempt from this requirement)
• Homeownership counseling is required
Restrictions:
• Must be used with the 30 Year Fixed Rate Loan
• May not be combined with other grant sources funded by the Illinois Affordable Housing Trust Fund or federal HOME funds
• Income restrictions apply
PLEASE NOTE: Participation in the Home Start Down Payment Assistance Loan program is entirely optional. Homebuyers can opt for just the Home Start 30 Year Fixed Rate Loan. However, participation in just the Down Payment Assistance Loan program is not permitted.
For more information see www.ihda.org for more details
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