The Illinois Housing Development Authority has launched a new limited-time grant to help homebuyers across Illinois afford their closing costs.
Through the new IHDA Advantage Subsidy program, IHDA will give eligible homebuyers an outright grant of either $1,500 or $2,500, depending on household income, to pay for closing costs associated with their home purchase.
The grant can be layered with IHDA’s current down payment assistance programs, allowing homebuyers to receive anywhere from $8,500 to $12,500 in assistance when purchasing a home.
“Across Illinois, homes sales have been on the decline for the past 12 months and the Illinois Housing Development Authority is seeking to end that by making homeownership more accessible and affordable for credit-worthy households,” said Tara Pavlik, managing director of IHDA’s homeownership programs. “This additional $2,500 grant will provide homebuyers with the closing costs necessary to achieve the American dream of owning a home.”
Potential homebuyers consistently point to an inability to afford the down payment as their primary obstacle to homeownership.
In the 2018 fiscal year, IHDA was able to help 5,500 people buy a home through two programs:
• 1stHome Mortgage: Financed through the federal Hardest Hit Fund Program, 1stHomeIllinois provides first-time homebuyers (veterans excluded) in four targeted counties $7,500 in down payment assistance. Down payment assistance loans are in the form of a five-year, forgivable second mortgage, and are given in conjunction with an IHDA 1stHome Mortgage loan product. The assistance incentivizes home buying in distressed areas across Cook, Marion, St. Clair and Winnebago counties, which helps to stabilize housing markets and prevent future foreclosures.
• Access Mortgage: Launched in 2018, the IHDA Access Mortgage program is available to both first-time and repeat homebuyers. Available statewide, each mortgage option comes with an affordable, fixed interest rate and up to $10,000 to assist eligible borrowers with their down payment and closing costs for the purchase of a new or existing home. The program is not exclusive to first-time buyers and may be used by buyers in any county in the state.
Interested homeowners can find additional information and a list of the nearest participating lenders at www.ihdamortgage.org.