Illinois IHDAccess Forgivable

The Illinois IHDAccess Forgivable program, offered by the Illinois Housing Development Authority (IHDA), is designed to provide financial assistance to homebuyers by covering down payment and closing costs. With forgivable loan options, this program helps make homeownership more accessible and affordable for eligible residents in Illinois.

Benefits

Provides up to 4% of the purchase price (capped at $6,000) in financial assistance for down payment and closing costs.
The assistance is offered as a forgivable loan, meaning no repayment is required if the homeowner remains in the home for at least 10 years.
Works alongside 30-year fixed-rate mortgages to ensure predictable monthly payments.
Supports both first-time and repeat homebuyers who meet eligibility requirements.

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 adherence to lender-specific underwriting guidelines.
Debt-to-income ratios must meet program standards to ensure buyers can afford their mortgage payments.
Completion of a homebuyer education course is mandatory to prepare participants for the responsibilities of homeownership.

Additional Information

The Illinois IHDAccess Forgivable program is a key resource for homebuyers seeking financial support to reduce upfront costs. By offering forgivable loans and competitive mortgage options, the program enables residents to achieve the dream of homeownership while building long-term stability and equity. Administered by the Illinois Housing Development Authority, this initiative strengthens communities and promotes sustainable housing solutions throughout the state.

Frequently Asked Questions About Our Program

What is the IHDAccess Forgivable program?

The IHDAccess Forgivable program provides eligible homebuyers in Illinois with up to 4% of the purchase price, capped at $6,000, in down payment and closing cost assistance. This assistance is structured as a forgivable loan, which is forgiven monthly over a 10-year period, effectively turning it into a grant if the homeowner remains in the home for the full term.

Who is eligible for the IHDAccess Forgivable program?

Eligibility extends to both first-time and repeat homebuyers purchasing a primary residence in Illinois. Applicants must meet income and purchase price limits specific to their county and household size, possess a minimum credit score of 640, and contribute the greater of $1,000 or 1% of the purchase price from their own funds.

What types of properties are eligible under the IHDAccess Forgivable 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 Forgivable 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 Forgivable 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 Forgivable program?

The assistance is provided as a second mortgage loan, forgivable over a 10-year period. As long as the homeowner does not sell or refinance the property within this timeframe, the loan is forgiven, requiring no repayment.

Can the IHDAccess Forgivable 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 Forgivable 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 10-year forgiveness period ends?

If the property is sold or refinanced before the 10-year period concludes, the remaining unforgiven portion of the assistance must be repaid at the time of sale or refinancing.

Are there any fees associated with the IHDAccess Forgivable 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 Forgivable assistance be combined with other down payment assistance programs?

Combining the IHDAccess Forgivable 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 Forgivable 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 Forgivable loan?

The IHDAccess Forgivable loan is interest-free, and as long as program requirements are met, the loan is forgiven over the 10-year period without any interest charges.

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

Yes, the property purchased must be occupied as the borrower's primary residence throughout the 10-year forgiveness period.

Can the IHDAccess Forgivable 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 Forgivable loan?

No, there is no prepayment penalty. However, if you sell or refinance the home before the 10-year forgiveness period ends, the remaining unforgiven portion of the assistance must be repaid.

What documentation is required to apply for the IHDAccess Forgivable 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.