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Understanding the FHA 203k Loan

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If you’re angling to buy a home at a price you can afford, you may consider making some compromises, like looking outside your dream neighborhood, for example. You might also need to consider homes that aren’t in perfect shape, or even ones that require a complete overhaul. Fortunately, some mortgages allow you to wrap the costs of a remodeling project into the loan. This could be true when you use this type of mortgage to purchase a property, or when you decide to remodel a home you already own and refinance to access funds for your project.

The Federal Housing Administration (FHA)’s 203(k) rehab loan is a popular option that works in these scenarios. This type of loan allows homeowners to roll remodeling funds into their primary mortgage.

In this guide, we’ll go over the following details to explain how the 203(k) loan works:

What is a 203(k) loan?

Imagine you want to purchase a $100,000 home that needs a minimum of $20,000 in upgrades and repairs to make it habitable, clean and safe. You could purchase the home and move in until you can finance the improvements separately, but you could also take out a 203(k) rehab loan that covers both the initial mortgage amount and the cash you need for repairs.

While many consumers use the 203(k) loan for purchases, also note these loans work for refinancing as well. In other words, if you already own your home but need cash for important updates and improvements, you could refinance your current mortgage with a 203(k) loan and borrow additional funds to pay for the repairs.

The 203(k) loan program offers two versions that work best for different situations:

  • The Standard 203(k) is perfect for updates and repairs, although there is a minimum repair cost of $5,000 and you have to work with a 203(k) loan consultant to complete the process.
  • The Limited 203(k) is for modest upgrades and repairs. This loan does not require you to use a 203(k) consultant, but the maximum repair cost cannot exceed $35,000. There is no minimum repair amount for this type of 203(k) loan.

Generally speaking, 203(k) loans can be used for projects that increase the value of your home, make it safer or improve structural integrity. The FHA lists the following eligible activities for loan funding on its website:

  • Structural alterations and reconstruction activities
  • Improvements to a home’s function or utility
  • Improvements that improve health or eliminate safety hazards
  • Changes that improve a home’s appearance
  • Replacing or repairing plumbing, a well or a septic system
  • Replacing or repairing roofing, gutters or downspouts
  • Replacing or adding flooring
  • Major site improvements or landscaping projects
  • Improvements that make homes accessible for people with a disability
  • Energy-use improvements

Eligibility for using a 203(k) rehab loan

While 203(k) loans tend to offer flexible terms for both borrowers and the homes they suit, they do come with some basic requirements.

Property eligibility requirements

For a property to qualify for a 203(k) rehab loan, it must have been completed at least one year before it is assigned a case number. This means 203(k) loans cannot be used for brand-new construction that is less than 1 year old. Other property requirements for 203(k) loans include:

  • Must be a one- to four-unit building of single-family homes
  • Can be a condominium if it is in an FHA-approved condominium unit; improvements are limited to the interior of the unit in most cases, and the unit is in a building with no more than four units
  • Can be manufactured housing if the upgrades and improvements do not affect the structural components of the building
  • Can be a mixed-use property with one to four residential units, provided at least 51% of the unit is residential
  • The home cannot exceed dwelling-unit limitations for the area
  • The home must be located in the United States.

Borrower eligibility requirements

There are also borrower eligibility requirements for 203(k) loans. These requirements determine who is eligible and under what circumstances.

To qualify for a 203(k) loan, you must:

  • Have a valid Social Security number (unless you are a state or local government agency, instrument of government or nonprofit approved by the U.S. Department of Housing and Urban Development, or HUD)
  • Be able to provide the lender with your SSN, name, date of birth, original pay stubs, W-2s, valid tax returns and any other required information to obtain a mortgage
  • Have a minimum credit score of 500
  • Be a U.S. citizen or an eligible noncitizen
  • Not have any delinquent federal tax debt
  • Not have a delinquent FHA home loan
  • Must live in the property as a principal residence.

How to get an FHA 203(k) rehab loan

To determine eligibility for an FHA 203(k) loan, you’ll need to search for a lender that’s approved to offer FHA loans. Fortunately, HUD offers a tool on its website that allows you to search for FHA-approved lenders in your area. It even includes a featuring of searching only for lenders that have dealt with a 203(k) rehab loan in the last 12 months.

If you plan to apply for a Standard 203(k) rehab loan, you’ll need to work with a 203(k) consultant. This consultant, who must meet stringent requirements in terms of their work experience and licensing, will inspect the property and prepare the architectural paperwork, work write-up and cost estimate for your project.

The FHA 203(k) consultant is also charged with overseeing the renovation funds, which are initially placed in an escrow account. Your consultant is able to sign off on when these funds are released to contractors and service providers working on your project.

Pros and cons of an FHA 203(k) loan

FHA 203(k) rehab loans come with both advantages and disadvantages. Some reasons to consider these loans are listed below, along with some of the pitfalls that make them a less attractive option.

Pros of FHA 203(k) loans

  • FHA loans have low credit-score requirements: You can qualify for an FHA 203(k) loan with a credit score as low as 500. It’s a much lower minimum standard credit score than many other types of home loans.
  • Wrap your remodeling costs into your home loan: The biggest benefit of FHA 203(k) rehab loans is that you don’t have to pay for remodeling costs out of pocket. You can wrap the costs of your project into your primary home loan instead.
  • Interest rates are typically lower than some other mortgage options: FHA loans also come with low closing costs, and FHA interest rates may be lower than some other types of home loans.

Cons of FHA 203(k) loans

  • Standard 203(k) loans require you to work with a loan consultant. Not only can working with a 203(k) loan consultant cost up to $1,000 in fees for the service, but this layer of work adds yet another step to the process. Remember that your 203(k) loan consultant will have to complete an inspection of the home, sign off on all improvements and their costs and address any health and safety issues.
  • Government-backed loans tend to come with a lot of rules. Government-backed FHA loans have many rules, and FHA 203(k) loans are no exception. For example, you cannot use this type of loan for “luxury items” including hot tubs, outdoor fireplaces or swimming pools.

Alternatives – other renovation loans

As you dig deeper into the prospect of taking out an FHA 203(k) rehab loan for home improvements, don’t forget there may be other options that work for your situation. Some 203(k) loan alternatives include:

  • Fannie Mae HomeStyle® Renovation: Fannie Mae’s HomeStyle Renovation loan is another type of home loan that lets you include renovation and repair costs in your mortgage amount. These loans tend to offer competitive rates that can be lower than those you can get with a home equity loan or home equity line of credit (HELOC), and they work for the purchase of a home as well as refinancing an existing home.
  • Home equity loan: A home equity loan lets you borrow against the equity in a home you already own to free up funds for repairs, renovations or any other type of spending. This type of loan comes with a fixed interest rate, fixed monthly payment and fixed repayment timeline.
  • Home equity line of credit (HELOC): A HELOC is a line of credit that works similarly to a credit card except but is secured by the equity in your home. These loans have fluctuating monthly payments that vary based on how much you borrow, as well as variable interest rates.
  • Personal loan for home improvement: Also be aware that you can take out an unsecured personal loan for home improvements. Like home equity loans, these loans come with a fixed interest rate, fixed monthly payment and fixed repayment timeline.

Conclusion

If the home you love needs some love, it’s nice to know there are plenty of ways to access the cash you need. Compare your options, including 203(k) rehab loans, and weigh the pros and cons of each before you decide.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Holly Johnson
Holly Johnson |

Holly Johnson is a writer at MagnifyMoney. You can email Holly here

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Mortgage

Indiana First-Time Homebuyer Programs

Editorial Note: Parts of this article were reviewed by a lender to ensure accuracy prior to publication. The overall conclusions, recommendations and opinions are the author's alone.

Buying your first home can seem overwhelming at times. Not only do you have to find a house you love, but you also have to submit an immense amount of paperwork listing every detail of your financial life. And let’s not forget about the enormous expense involved in buying a home — things like closing costs, a down payment, moving expenses and more.

Fortunately, first-time homebuyers in the Hoosier State may qualify for some financial help. The state of Indiana offers an array of programs intended to help qualifying consumers stop renting and transition into homes they can afford.

Some of the state’s programs come with down payment assistance, while others offer tax credits and mortgages with preferential terms. This guide will go over each of the Indiana homebuyer programs available in 2019, how they work and how you can qualify.

Here’s a quick list of everything we’ll cover:

Indiana first-time homebuyer programs

The Indiana Housing & Community Development Authority (IHCDA) aims to help Indiana residents who qualify find affordable housing throughout the state. The agency works with developers, lenders, nonprofit organizations and investors to create new opportunities and bolster existing opportunities for low- and moderate-income Hoosiers.

The IHCDA’s stated mission is “to provide housing opportunities, promote self-sufficiency, and strengthen communities.” It accomplishes this goal through several different programs, each of which is explained in depth below.

Eligibility for Indiana assistance

Qualifying for one of Indiana’s first-time homebuyer programs starts with making sure your income falls within limits set by the state’s programs. These income limits vary by county and by household size.

Also note that you are typically required to pay a “loan reservation fee,” which is normally $100, and that loan programs offered are for 30-year fixed-rate mortgages.

Individual programs also list more requirements that dictate which Indiana residents may be eligible.

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Affordable Home (AH)

The Affordable Home (AH) program aims to help Indiana homeowners secure affordable mortgages in the state’s targeted areas. This loan is eligible for FHA financing, and you’ll have to pay a $100 reservation fee to get started. Please note that loans in this program must fall under acquisition limits — maximum loan amounts — that vary by county.

Features

  • Thirty-year fixed-rate mortgage that uses funds from the Federal Housing Authority (FHA).
  • Does not offer assistance with closing costs.

Eligibility

  • Must be a first-time homebuyer or someone who has not owned a home in three years.
  • If you have owned a home within the last three years, you may be able to use this loan if you are an eligible veteran or buying in a targeted area.
  • Must meet income guidelines based on household size and county.
  • Property can be one to four units.
  • Must plan to live in the home as a principal residence.
  • Must have a credit score of 660 or higher.

How it works

The IHCDA offers a list of participating lenders that cooperate with agency guidelines. The lender will work with you to determine eligibility for the AH program and help you move through the mortgage process.

Learn more

Helping to Own (H2O)

The H2O program works as a down payment assistance grant that uses FHA financing and is combined with a 30-year fixed-rate mortgage. This program works for homes whose prices fall within acquisition cost limits, which vary by county.

Features

  • Down payment assistance grant that does not need to be repaid, up to 3.5% of the purchase price or appraised value (whichever is lower).
  • Thirty-year fixed-rate FHA mortgage.

Eligibility

  • Minimum credit score of 660 required.
  • Must pay a reservation fee of $100.
  • Must be a first-time homeowner who hasn’t owned a home in three years unless you’re an eligible veteran or purchasing in a targeted area.
  • Must plan to live in the home as a principal residence.
  • Purchase price of the home cannot exceed fair market value.
  • Must meet income guidelines based on household size and county.
  • Price of home must be below acquisition limits, which vary by county.

How it works

Applications for this program must be completed through a participating lender. Once you meet with an IHCDA lender, they can determine your eligibility and advise you on beginning your mortgage application.

Learn more

Honor Our Vets (HOV)

The Honor Our Vets (HOV) program aims to help eligible veterans afford homeownership by combining the benefits of a VA loan with $5,000 in incentives that can be used toward relocation, a down payment or closing costs.

Features

  • Thirty-year fixed-rate VA mortgage
  • Receive $5,000 in funding for closing costs, a down payment or relocation expenses
  • 100% financing available

Eligibility

  • Loans must meet VA and IHCDA guidelines.
  • Must be an eligible servicemember, veteran or surviving spouse.
  • Must plan to live in the home as a principal residence.
  • Must meet income guidelines based on household size and county.
  • Can be a single-family home or a multi-family home with up to four units.
  • Purchase price cannot exceed fair market value.
  • Must pay a reservation fee of $100.

How it works

Once again, the IHCDA suggests starting the process by contacting an IHCDA-approved lender. Upon locating a lender you want to work with, you will be able to determine eligibility and move forward through the process.

Learn more

Mortgage Credit Certificate (MCC)

The Mortgage Credit Certificate (MCC) works as a tax credit that varies depending on the cost of your home. The goal of this credit is to make homeownership more affordable and provide funding consumers can use toward their monthly mortgage payment. The maximum tax credit is $2,000, and it can be claimed each year as long as it doesn’t exceed your federal income tax liability after taking credits and deductions into account.

Features

  • Thirty-year fixed rate mortgage
  • A federal tax credit of between 20% and 35% of the annual interest paid and accrued on the mortgage, depending on your mortgage amount.
  • Compatible with conventional financing, FHA loans,USDA loans or VA loans.

Eligibility

  • Must pay $500 reservation fee.
  • Must be a first-time homebuyer (someone who hasn’t owned a home in the last three years), unless you’re purchasing in a targeted area or you’re an eligible veteran.
  • Must meet income guidelines based on household size and county.
  • Home price must be below acquisition costs set by county.
  • Must be a U.S. citizen or eligible noncitizen.
  • Property must be in Indiana and a single- or multi-family home with up to four units.
  • No more than 10% of the residence can be used for business purposes.
  • Must reside in the home as a principal residence.
  • Property can only be one parcel.

How it works

Start the process by reaching out to an IHCDA-approved lender that works with the MCC program in the state of Indiana. Once you locate a lender, they’ll work with you through the approval and loan process.

Learn more

My Home (MH)

My Home (MH) is a loan program that helps consumers qualify for affordable fixed-rate home loans. This program doesn’t offer down payment assistance, so it’s best for consumers who can fund their own closing costs.

Features

  • Thirty-year fixed rate mortgage
  • Eligible for conventional financing

Eligibility

  • Can be either a first-time or repeat homebuyer.
  • Must meet income guidelines based on household size and on the county of the home.
  • Property can be one- or multi-unit with up to four dwellings.
  • Must be the buyer’s principal residence.
  • Purchase price of the property cannot exceed fair market value.
  • Minimum credit score of 640 with loan-to-value ratio (LTV) of 95% or less.
  • Credit score requirements vary for LTVs over 95%.
  • Must pay a reservation fee of $100.

How it works

You’ll need to speak with an IHCDA-approved lender to determine eligibility for the My Home program. The lender will walk you through eligibility and help you apply for the program.

Learn more

My Home with Mortgage Credit Certificate (MH/MCC)

The My Home with Mortgage Credit Certificate program (MH/MCC) combines the features of both programs. You’ll get access to a 30-year home loan with a fixed interest rate along with a federal tax benefit that varies based on the price of your home.

Features

  • Thirty-year fixed rate mortgage
  • Federal tax benefit of 20% to 35% of the annual interest paid on the mortgage amount (up to $2,000). Percentage amount depends on the size of your mortgage.
  • Eligible with conventional financing.

Eligibility

  • Must be a first-time homebuyer.
  • Must meet income guidelines based on the county of the home and household size.
  • Property can be one- or multi-unit with up to four dwellings.
  • Must be the buyer’s principal residence.
  • Purchase price of property cannot exceed fair market value.
  • Minimum credit score of 640 with LTV of 95% or less.
  • Credit score requirements vary for LTVs over 95%.
  • Must pay a reservation fee of $100.

How it works

Speaking with an IHCDA-approved lender is key if you hope to apply for the MH/MCC. The lender will help determine whether you qualify for the program and walk you through the process.

Learn more

Next Home (NH)

The Next Home (NH) program provides down payment assistance that you can pair with a conventional mortgage or an FHA home loan. The down payment assistance cannot exceed 3.5% of the purchase price for FHA loans, or 3% of the purchase price for conventional loans.

Features

  • Thirty-year fixed rate mortgage
  • Minimum credit score of 660 for FHA or 640 for conventional
  • Can be used with conventional or FHA financing
  • Down payment assistance of up to 3.5% for FHA loans, and up to 3% for conventional loans

Eligibility

  • Does not require that you be a first-time homebuyer.
  • Credit score of 660 for FHA loan or 640 for conventional loan.
  • Must meet income guidelines based on county and household size.
  • Home may be single- or multi-family with up to four units.
  • Must live in the home as your primary residence.
  • Purchase price of property cannot exceed fair market value.
  • Down payment assistance can be used for closing costs, down payment or prepaid expenses.
  • Must pay reservation fee of $100

How it works

Contact a participating IHCDA-approved lender to determine eligibility and begin the process. Note that the IHCDA itself does not process home loans.

Learn more

Next Home with Mortgage Credit Certificate (NH/MCC)

The NH/MCC Program allows you to pair a 30-year fixed rate mortgage with a federal tax credit that varies based on your mortgage amount. This program combines the features of Next Home with the MCC for those who qualify.

Features

  • Thirty-year fixed-rate mortgage
  • Down payment assistance of up to 3.5% for FHA loans, or 3% for conventional loans
  • Federal tax benefit of 20% to 35% of the annual interest paid (up to $2,000)
  • Eligible for FHA or conventional financing

Eligibility

  • Must be first-time homebuyer unless purchasing in a targeted area.
  • Minimum credit score of 660 for FHA and 640 for conventional loans.
  • Must pay a reservation fee of $100.
  • Must fall within income limits based on household size and county where home resides.
  • Home price must be less than acquisition limit, which varies by county.
  • Must live in home as primary residence.

How it works

Since this program combines two different IHCDA programs, you’ll need to work with an IHCDA lender that is knowledgeable about the program guidelines and rules for both. Speak with an IHCDA-approved lender to begin the process.

Learn more

National first-time homebuyer programs

If you plan to buy a home in Indiana, these first-time homebuyer programs for Hoosiers can provide some financial help. However, it’s important to note that many national programs also exist. Check out LendingTree’s guide to national first-time homebuyer programs to learn more about all the programs that might be available to you.

This article contains links to LendingTree, our parent company.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Holly Johnson
Holly Johnson |

Holly Johnson is a writer at MagnifyMoney. You can email Holly here

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Illinois First-Time Homebuyer Programs of 2019

Editorial Note: Parts of this article were reviewed by a lender to ensure accuracy prior to publication. The overall conclusions, recommendations and opinions are the author's alone.

Buying your first home can be both exciting and scary. You’re ready to stop renting and start building equity, but the process — and the costs involved — can be overwhelming. If your goal is to build a life in Illinois, however, you do have one thing working in your favor: you may qualify for some help. The Illinois Housing Development Authority (IHDA) offers a wide range of programs that can help you purchase a home with better terms, provided you meet their guidelines. While some programs provide down payment assistance, others offer loans that may be forgivable under certain circumstances.

We created this guide to help consumers learn about the first-time homebuyer programs available in Illinois in 2019. If you’re eager to purchase a home this year, yet you need some assistance, keep reading to learn more.

Illinois first-time homebuyer programs

The Illinois Housing Development Authority is the state agency helping consumers find affordable housing in the state. Its stated goal is “financing the creation and preservation of affordable housing in Illinois,” and it achieves this goal through a variety of programs geared toward potential homeowners who may not be able to purchase a home without help.

The IHDA offers programs that help Illinois residents purchase a home, receive financial counseling or pay for much-needed upgrades and repairs. Its I-Refi program also helps homeowners refinance their current mortgage when they owe more than their home is worth.

Eligibility for Illinois assistance

Consumers who wish to apply for an Illinois homeowner program need to reside in the state. You also need a minimum credit score of 640 to qualify for an IHDA loan. If your credit score isn’t high enough to qualify, the agency offers counselors who can offer guidance and tips to improve your credit rating over time.

It’s important to note that you’ll also need to meet income requirements for IHDA loans, though they vary by county and household size. Generally speaking, income limits range between $77,900 and $114,840, depending on the county you live in, how many adults live with you, and other factors.

There are also loan limits that determine how much you can borrow. For a single-unit residence, these limits vary between $271,164.60 and $336,706.20, depending on the county the home is located in.

Keep reading to learn more about each program available in the state, how they work and what it takes to qualify.

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IHDAcess Deferred

The IHDAccess Deferred program offers Illinois residents who qualify a 30-year mortgage with competitive interest rates, as well as an interest-free loan you can use toward your down payment and closing costs. This program is available to first-time and repeat buyers in the state.

Features

The IHDAccess Deferred program features

  • Up to $7,500 in assistance toward your down payment and closing costs, with a cap of 5% of the loan amount
  • A 30-year mortgage with a fixed interest rate that is competitive
  • The ability to use this program with several mortgage types, including FHA loans, VA loans, USDA loans and more
  • You don’t need to repay your loan assistance until you sell your home, refinance or pay off your mortgage

Eligibility

To qualify for this program, you must

  • Be able to contribute $1,000 or 1% of the purchase price (whichever is greater) toward your home
  • Meet income and purchase price guidelines that vary based on county and household size
  • Purchase an existing home or new construction
  • Have a credit score of 640 or higher
  • Plan to live in the home as your primary residence
  • Be willing to complete homeownership counseling before you close on the loan (either in person or online)

How it works

If you’re interested in this program and feel you meet the requirements, your first step is to speak with an IHDA lender. The lender will take a close look at your financial situation to help you determine if this program is right for your needs. Once you begin working with an IHDA lender, the IHDA steps aside and lets the process move forward.

Learn more

IHDAccess Forgivable

The IHDAccess Forgivable program combines a 30-year mortgage with down payment and closing cost assistance. However, the assistance component does not need to be repaid if you live in the home for at least 10 years. This program is available to first-time homebuyers as well as repeat buyers.

Features

The IHDAcess Forgivable program offers

  • A fixed-rate mortgage with a competitive interest rate
  • Closing cost and down payment assistance up to $6,000 or 4% of the purchase price of your home
  • The ability to use this program with several mortgage types, including FHA loans, VA loans, USDA loans and more

Eligibility

To qualify, you must

  • Be willing to contribute up to $1,000 or 1% of the purchase price, whichever is greater
  • Meet income and purchase price requirements based on household size and county
  • Have a credit score of 640 or higher
  • Plan to live in the home as your primary residence
  • Complete homeownership counseling before you close on the loan (either in person or online)
  • Purchase an existing home or new construction

How it works

Like other IHDA loan programs, the housing authority isn’t actually involved in the loan process. Instead, it urges you to connect with a lender that offer IHDA loans.

Once you find a lender in your area, the lender will go over your financial details and help you determine if you qualify.

Learn more

IHDAccess Repayable

If you qualify for this program, you’ll receive a 30-year mortgage with a competitive interest rate, as well as up to $10,000 (or 10% of your loan amount) in assistance toward closing costs and your down payment.

The assistance component comes in the form of an interest-free loan that is repaid over 10 years. Like other loans on this list, this program is available to new homeowners as well as repeat buyers. It can be used for existing homes or new construction.

Features

The IHDAccess Repayable program offers

  • An interest-free loan of up to $10,000 or 10% of the purchase price of your home to use toward your down payment or closing costs
  • A 30-year fixed rate mortgage with a competitive APR
  • The ability to use this program with several mortgage types, including FHA loans, VA loans, USDA loans and more

Eligibility

Illinois residents may qualify if they

  • Meet income and purchase price requirements based on their household size and the county where the home is located
  • Have a credit score of 640
  • Are willing to contribute up to 1% of the purchase price or $1,000 (whichever is greater)
  • Live in the home as their primary residence
  • Are willing to complete homeownership counseling before they close on their loan (in-person or online)
  • Purchase an existing home or new construction

How it works

The application process for this type of loan works similarly to other IHDA programs. The agency asks you to contact an IHDA-approved lender, who will take a look at your finances and help you determine your best course of action. The IHDA does not handle loans directly.

Learn more

1stHomeIllinois

The 1stHomeIllinois program combines a down payment assistance grant with a long-term fixed-rate loan. This program is available to first-time homebuyers, military veterans, and individuals who haven’t owned a home in the last three years.

Features

With the 1stHomeIllinois program, you can

  • Receive up to $7,500 in down payment and closing cost assistance
  • Get a 30-year mortgage with a fixed interest rate
  • Use this program with several mortgage types, including FHA loans, VA loans, USDA loans and more

Eligibility

To qualify, you must:

  • Purchase a one- or two-unit property in the following Illinois counties: Cook, Marion, St. Clair or Winnebago
  • Be a military veteran, a first-time homeowner or someone who hasn’t owned a home for at least three years
  • Purchase an existing home (new construction is not allowed)
  • Live in the home as a primary residence
  • Have a credit score of 640 or higher
  • Be willing to complete in-person or online homeownership counseling before the loan closes
  • Be able to contribute up to $1,000 or 1% of the purchase price of the home, whichever is greater
  • Meet income and purchase price guidelines based on county of residence and household size

How it works

Illinois residents interested in this program should start the process by looking for an IHDA lender. Once you meet with a lender and provide them with your financial information and personal details, they can gauge your eligibility for the 1stHomeIllinois program or help you find a IHDA loan program that might work better for you.

Learn more

National first-time homebuyer programs

While the programs above can be extremely helpful for Illinois residents who can qualify, keep in mind that there are plenty of other home loans to consider. You may also want to look into FHA loans or USDA loans, or even VA loans if you’re a qualified veteran.

The LendingTree guide to first-time homebuyer programs can also introduce you to additional programs that may fit your needs. With enough research and preparation, you could be in your dream home in no time.

This article contains links to LendingTree, our parent company.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Holly Johnson
Holly Johnson |

Holly Johnson is a writer at MagnifyMoney. You can email Holly here

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