Illinois IHDAccess Deferred

The Illinois IHDAccess Deferred program, managed by the Illinois Housing Development Authority (IHDA), offers financial assistance to help eligible homebuyers cover the upfront costs of purchasing a home. This program provides down payment and closing cost support in the form of a deferred loan, helping to reduce financial barriers to homeownership.

Benefits

Provides up to 5% of the purchase price (capped at $7,500) in assistance for down payment and closing costs.
Assistance is offered as a deferred-payment loan with no monthly payments, repayable only when the home is sold, refinanced, or the mortgage is paid off.
Supports first-time and repeat homebuyers, making it an inclusive program for a variety of buyers.
Works with 30-year fixed-rate mortgages, ensuring predictable and stable monthly payments for participants.

Eligibility Requirements

Applicants must meet income and purchase price limits, which vary based on household size and property location.
The property must be located in Illinois and used as the buyer’s primary residence.
A minimum credit score of 640 is typically required, along with lender-specific underwriting criteria.
Debt-to-income ratios must meet program guidelines to ensure financial readiness for homeownership.
Completion of a homebuyer education course is mandatory to prepare participants for the responsibilities of owning a home.

Additional Information

The Illinois IHDAccess Deferred program is a key resource for homebuyers looking to reduce upfront costs and achieve their dream of homeownership. By offering financial assistance through a deferred loan, the program provides flexibility and support while promoting responsible and sustainable homeownership. Administered by the Illinois Housing Development Authority, this program helps strengthen communities and expand housing opportunities throughout Illinois.

Frequently Asked Questions About Our Program

What is the IHDAccess Deferred program?

The IHDAccess Deferred program offers eligible homebuyers in Illinois up to 5% of the purchase price, capped at $7,500, to assist with down payment and closing costs. This assistance is provided as an interest-free loan, deferred for the life of the mortgage, meaning repayment is not required until the home is sold, refinanced, or the mortgage is paid off.

Who is eligible for the IHDAccess Deferred program?

Both first-time and repeat homebuyers purchasing a primary residence in Illinois are eligible. Applicants must meet specific income and purchase price limits, which vary by county and household size, and must have a minimum credit score of 640.

What types of properties qualify under the IHDAccess Deferred program?

Eligible properties include single-family homes, townhouses, condominiums, and certain manufactured homes, provided they will serve as the borrower's primary residence.

Is homebuyer education required for the IHDAccess Deferred program?

Yes, all borrowers are required to complete a homeownership counseling course, which can be taken online or in person, to ensure they are well-prepared for the responsibilities of homeownership.

Are there income and purchase price limits for the IHDAccess Deferred program?

Yes, both income and purchase price limits apply and vary by county and household size. These limits are designed to assist low- to moderate-income families in achieving homeownership.

What is the structure of the assistance provided by the IHDAccess Deferred program?

The assistance is provided as an interest-free loan, deferred for the life of the mortgage. Repayment is not required until the homeowner sells the property, refinances the mortgage, or pays off the mortgage in full.

Can the IHDAccess Deferred assistance be used with different types of mortgage loans?

Yes, the program can be paired with various mortgage loan types, including FHA, VA, USDA, and conventional loans, offering flexibility to suit different borrower needs.

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Is there a minimum credit score requirement for the IHDAccess Deferred program?

Yes, applicants must have a minimum credit score of 640 to qualify for the program, ensuring borrowers have a satisfactory credit history.

What happens if I sell or refinance my home before the mortgage is paid off?

If the property is sold or refinanced before the mortgage is paid off, the deferred loan amount becomes due and must be repaid at that time.

Are there any fees associated with the IHDAccess Deferred program?

Standard loan fees, such as origination and processing fees, may apply. It's important to discuss all potential fees with your lender to understand the total cost of the loan.

Can the IHDAccess Deferred assistance be combined with other down payment assistance programs?

Combining the IHDAccess Deferred assistance with other programs may be possible, subject to specific program guidelines and approval. It's advisable to consult with your lender to explore available options.

Is there a first-time homebuyer requirement for the IHDAccess Deferred program?

No, the program is available to both first-time and repeat homebuyers, provided they meet the eligibility criteria.

What is the interest rate on the IHDAccess Deferred loan?

The IHDAccess Deferred loan is interest-free, meaning no interest accrues on the assistance amount over the life of the loan.

Are there specific debt-to-income (DTI) ratio requirements for the IHDAccess Deferred program?

Yes, DTI ratio requirements are established to ensure borrowers can comfortably manage their mortgage payments. These ratios may vary based on individual circumstances and should be discussed with your lender.

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Is mortgage insurance required when using the IHDAccess Deferred program?

Mortgage insurance requirements depend on the type of first mortgage loan selected. For instance, conventional loans with less than a 20% down payment typically require private mortgage insurance (PMI).

How do I apply for the IHDAccess Deferred program?

To apply, you need to work with a participating lender who will guide you through the application process, including verifying eligibility, assisting with necessary documentation, and explaining program requirements.

Are there occupancy requirements for the IHDAccess Deferred program?

Yes, the property purchased must be occupied as the borrower's primary residence throughout the term of the mortgage.

Can the IHDAccess Deferred assistance be used for new construction homes?

Yes, the assistance can be applied to both newly constructed and existing homes, provided all other program criteria are met.

Is there a prepayment penalty for the IHDAccess Deferred loan?

No, there is no prepayment penalty. However, if you sell or refinance the home before the mortgage is paid off, the deferred loan amount becomes due and must be repaid.

What documentation is required to apply for the IHDAccess Deferred program?

Applicants will need to provide proof of income, employment, credit history, and completion of the required homeownership counseling course, among other standard loan application documents.