Buying a new home can be a stressful and daunting task. For first-time home buyers, it might be overwhelming with the amount of new information thrown their way and the large amount of questions they want to ask.
With millions of homes out there, the process of finding the perfect one for you may take some time. But, when you finally find the house that best suits you it will be time to do some number crunching. There are various aspects of the home buying process first-time home buyers might not know about, such as inspector costs, closing costs and the cost to having a lawyer present at the signing. Luckily, there are programs that can help ease the financial burden for first-time homebuyers. If you are a first-time home buyer in Illinois, it could be useful to see if you qualify for Illinois Housing Down Payment Assistance (IHDA) program. Here’s what you need to know about IHDA:
What is it?
1stHomeIllinois is a program that is specifically tailored to assist people such as first-time homebuyers with financial assistance on the purchase of their home. The program offers assistance for down payment and closing costs to buyers that meet the requirements for acceptance.
What does it offer?
The program offers up to $7,500 for closing costs and down payment assistance. To help with mortgage payments, it offers a 30-year fixed-rate plan that comes with a fair interest rate. Also, home buyers get to choose the type of loan they would like such as FHA, VA, VSDA and conventional.
What are the requirements?
The program is tailored towards first time home buyers, so if you have owned a home within the past 3 years you won’t qualify for assistance. There are also specific location restrictions, buyers must choose a home in Boone, Cook, DeKalb, Fulton, Kane, Marion, McHenry, St. Clair, Will or Winnebago county. The buyer must put down 1% of the purchase amount or $1,000, whichever amount ends up being greater. Buyers must also be in good credit standing, and meet the income and purchase restrictions. Some homebuyers might not qualify if their income exceeds the highest amount listed for the program. The home must be purchased as a primary residence. Finally, the buyer must complete a homeownership counseling class which can be completed online or in person.
If you are a first-time home buyer who would like assistance in the home buying process, or with finding out what assistance you qualify for, click here to contact us.