CHICAGO � A new Illinois homebuyer program designed to help increase home buying accessibility for low and moderate-income people has been announced Thursday.
The new down payment assistance program, or Illinois HFA1 provides $10,000 for closing cost or down payment assistance to help make buying a home more affordable.Â
By offering a competitive interest rate and limiting the total fees charged to the borrower, Illinois Housing Development Authority (IHDA) programs aim to be as affordable as possible.
Funding for Illinois HFA1 is expected to help more than 1,500 new homeowners.
“Every individual, family, and senior in Illinois deserves to have a stable and safe home,� said Governor JB Pritzker. “That’s why my administration is ensuring that homeownership is accessible and attainable for every resident. Through Illinois HFA1, we’ll be able to support a new generation of homebuyers and set them up for long-term financial success.�
"Illinois is stepping up and standing in the gap to create a pathway for people to achieve the dream of owning a home," said Lt. Governor Juliana Stratton. "When we say housing is a right for all, that also includes committing to providing the assistance and support that eases the burden of being able to afford home ownership. Illinois HFA1 is the groundwork to do just that."
“A large hurdle to buying a home is saving enough money for a down payment, which has become more difficult with home values increasing, rising interest rates, and other obligations such as taking care of a family,� IHDA Executive Director Kristin Faust stated.
“If you have been on the fence about buying a home, don’t hesitate and reach out to one of our lenders today to discuss your options. You may be surprised how much you can save today and finally have the opportunity to put down roots in a community and build household wealth.�
Illinois HFA was developed through a multi-year coordination effort to make it easier for lenders to partner with IHDA and other Housing Finance Agencies in providing affordable mortgages.
Other elements of the HFA1 program includes:Â
- Reduced and/or eliminated loan overlays
- Common documents to reduce operational differences
- Aligned affordable mortgage and down payment assistance requirements in numerous areas
Even with low inventory and interest rates continuing to go up, IHDA is seeing its strongest start ever in homeownership production with more than 4,500Â new loan reservations since the beginning of 2023.
The number of homeowners who applied for IHDA Mortgage programs was 58% higher in the month of April compared to 2022.Â
In 2022, IHDA's down payment assistances programs helped more than 5,200 households buy a home in Illinois.
