Mayer Daley has announced a new $1 million initiative designed to help first-time home buyers in Chicago. The Home Purchase Assistance (HPA) program will give buyers between $10,000 and $40,000 each to assist with the purchase of new and existing homes in the city of Chicago. The idea is to provide buyers with the upfront funds needed to purchase a home, such as down payment and closing costs.
The amount of money awarded to any one participate is dependent on the buyer’s annual household income. To be eligible for the HPA program, the income for a two-person household cannot exceed $60,300 and for a four-person household the maximum income level is $75,400.
Purchases of condos, townhouses, single-family homes and small multi-unit residential buildings (up to four units) are covered under the program on the condition that they are owner-occupied. There are also purchase price limits that range from $398,315 for one unit to $628,919 for a four-unit property.
The $1 million price tag for the HPA program is apportioned from the city’s corporate budget. Mayor Daley hopes it will help decrease the supply of unsold homes in Chicago and allow more people to become homeowners. HPA assistance can be used in conjunction with the federal home buyer tax credit (which offers first-time buyers up to $8,000). Money received through the HPA program does not have to be repaid, as long as the recipient lives in the purchased home for a pre-determined period of time (between 5 and 30 years). The length of time is dependent on the buyer’s loan term.
More information on the HPA program and an application are available on the City of Chicago web site. Click here to view
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