Are You in Need of Down Payment Assistance Programs?

Are You in Need of Down Payment Assistance Programs?

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Updated April 2017

There are great options out there if you are looking for down payment assistance!

The two programs that I'd like to discuss today are the "First Home IL" program from IHDA and the "MCC Tax Certificate" program from the FHLB(Federal home Loan Bank) funds. There are some differences and we can help guide you through the maze to make sure you get exactly what you house payment calculatorqualify for!

The First Home IL

First the "First Home Illinois" program - it's $7,500 in down payment assistance that is given to you for a 30 year mortgage fixed rate using FHA, USDA or a veterans loan.

You must have not owned a home for over 3 years to be considered a first time home buyer.

It must be your primary residence and you have to contribute $1,000 or 1% of purchase price which ever is greater.

You can buy in the following countiesBoone, Cook, DeKalb, Fulton, Kane, Marion, McHenry, St. Clair, Will or Winnebago counties.

Cook County: There are also income limits so if you are a family of of 2 or less you need to make $79,432. For a family of 3 or more $91,347

The State of IL will take into account ALL incomes. Here are the rest of the income limits for the rest of the counties...

Income And Purchase Price Limits

Refinance

If you need to refinance there is a government program known as @HomeILMortgage

  • It helps you with $5,000 of closing costs
  • It must be your primary residence
  • You must complete a counseling session for home ownership

Helping Hands

The second program is the "Helping Hands" - which is $6,000 in down payment assistance that does NOT have to be paid back! The income limits are a little more stringent - you must be at or below the 80% AMI(area median income) for the county you live in.
There are other ways to structure a transaction as well if you have limited funds -whether you qualify for down payment assistance or not - which is why it really makes a difference with the Realtor and lender you use - they can make sure you get the best deal for YOUR situation!

TaxSmart Mortgage Credit Certificate Program

The MCC program is a tax credit that is only available if you buy a home in the City of Chicago. This program plays a role in your income taxes a homebuyer would receive a MCC to reduce income taxes by an amount equal to 25 percent of the interest paid on a mortgage. The tax credit may be claimed each year the home buyer continues to live in a home financed under this program.

You have to make sure your receive this certificate during the purchase of your home. It cannot be done after you close.

For more information on this program you can go to City of Chicago Tax Program.

For periodic information on all programs and more on home buying join my newsletter here ---> http://bit.ly/howtobuyahome

 

 

 

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About the Author

Sonia

I am a down to earth kinda of gal that will tell you like it is. I have lived in Chicago all my life and I love my city. My passion is helping others get through the jungle of real estate whether it is buying.selling or investing.