The clock is winding down on the $8000 Federal Tax Credit that is available to first time home buyers. What some may not know, if you live in Illinois, you may have more than one thing going for you! Illinois has introduced a new program called the Illinois Home Start Loan Program. This program offers two different loans to help first time homebuyers become home owners! The first loan is a Home Start 30 Year Fixed Rate Loan. The second is the Home Start Tax Credit Advance!
If you are a first-time homebuyer in Illinois, you may qualify for both loans. You can utilize the tax credit loan with the Illinois Housing Development Authority's new Illinois Home Start Loan program. The Home Start program offers a 30-year fixed rate amortized loan. If you take advantage of the zero-interest, short-term Home Start Tax Credit Advance Loan, you can use it for a down payment. The Advance loan will be paid back when you earn your tax credit in 2010. The maximum loan amount under the Home Start Advance Loan is $6,000 or 3.5 percent of the purchase price, whichever is greater.
The Home Start 30 Year Fixed Rate Loan is insured by the FHA and serviced by U.S. Bank Home Mortgage. There are income guidelines based on your county. For Cook County, the income guidelines are $74,900 for a Household of 1-2, and $86,135 for a family of 3 or more. The terms of the loan are subject market changes, but on August 18, 2009 the interest rate was at 5.75 percent. Now remember, this can be used at the same time as the second loan: the Home Start Tax Credit Advance Loan. You can purchase a home NOW and use your future tax credit for the down payment.
There are a few other terms to be aware of. The first step is to qualify for the Home Start 30 Year Fixed Rate Mortgage. Homebuyers must complete an educational course with a certified HUD counselor. The tax advance MUST be paid in full no later than June 30th, 2010. If you fail to repay the loan, it will be modified to a ten year amortizing loan at 0.5 percent ABOVE the interest rate on the 30 year mortgage. Lastly, Illinois veterans and active duty service personnel do not have to be first time home buyers to qualify.
But time is running out on this program!! These programs end at midnight on November 30th. Most mortgage brokers will agree, you should have your property under contract at least 45 days BEFORE the deadline, so by October 15th. The program goes by the date of the closing and not by the date of the signed contract! For information on the Federal Tax Credit Deadlines, take a look at http://www.yourillinoishome.com/.
If you want more information you can check out the Illinois Housing Development Authority, you can also search for lenders in your area. Now more than ever you need an agent with experience in Chicago Real Estate! Call Karen Breen Elia or Louis Elia at ChicagoCityHomes your local real estate experts for Chicago's North Side!
Comments(1)