The Illinois Home Start Loan Program

Real Estate Agent with Executive Realty Group


The Illinois Home Start Loan Program was made for First Time Home Buyers.  The First-Time Home Buyer Credit enabled buyers to receive a credit on their tax returns when they purchased by November 30, 2009.  Now, first-time home buyers can take advantage of this program by putting the tax credit as a down payment.  There are a few guidelines to this:

  • The maximum amount of the loan can be 3.5% of the purchase price, up to a maximum of $6,000.
  • Only buyers who close on or before November 30th, 2009 are eligible.
  • Buyers can pay the loan back when they receive their income tax returns.
  • The buyer needs to take a home buyer education class given by a HUD certified counsler

To read about all of the details of this credit, go to:  or

Comments (5)

Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.

I don't get it is this the same a the one that is being tauted at the national level or in addition too. Man that would be exciting.

Oct 01, 2009 03:38 PM
Melissa Anderson
Be My Neighbor Mortgage - San Antonio, TX
Your Texas Lender

FHA currently requires the 3.5% down payment from buyer's own funds or gift funds.  They have not authorized funds from the 8k tax credit to be used for the down payment, yet.  Perhaps I'm a few days late in researching this.  Last I heard directly from HUD is they are not allowing the tax credit to be used for the down.  Once again, perhaps it is different in TX, we have more unique lending laws.

Do you know of any buyers who have closed loans through this program via FHA?

Oct 01, 2009 03:40 PM
Aleksandra de Leon
Executive Realty Group - Bloomingdale, IL

This is new in Illinois at the end of summer.  There are a few stipulations to this, but it gives first-time home buyers some options.  I am not sure if it is being offered in other states as well.  I just renamed the post to state "Illinois Home Start Program" so not to confuse it on a national level.

Oct 01, 2009 03:48 PM
David Zablatsky
Avant Realty Group - Needham, MA
Real Estate - Needham, MA

Sounds great i hope it is offered in Massachusetts soon!


Oct 01, 2009 03:52 PM
Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production

Hey A....I love IHDA, but it has a lot of drawbacks as well.  This information though is soooooooo timely and for some consumers it really couldn't come at a better time.  Thanks for sharing.

Oct 01, 2009 04:05 PM