HOMEBUYER ASSISTANCE/REHABILITATION PROGRAM

Homeownership is a dream for most Americans, regardless oftheir income level. That’s why HOME offers down payment, closing cost andrehabilitation assistance to low-income homebuyers who make the purchased hometheir principal residence and rehabilitate it according to IHDA and HUD standards.Before receiving HOME assistance, prospective homebuyers must take part inhomeownership counseling to ensure they understand budgeting and personalfinancial management, home mainte­nance, the mortgage loan process, legaldocuments and obligations associated with buying a home, and “work-out” optionsthey have with mortgage lenders in case financial problems arise.

SPONSORING AGENCIES

Local governments, non-profit organ­izations and CommunityHousing Development Organizations (CHDOs — more information is in the “CommunityHousing Development Organizations” section) may all take part in homebuyerassistance and rehabilitation activities. For-profit groups are not eligible.

Homeowners should apply for HOME assistance through sponsoring agenciesfunded by IHDA, not directly through the Authority or via the Single FamilyProgram Department.

ELIGIBLE PROPERTIES

Houses selected by sponsoring agencies may be one-unitproperties, condomini­ums or manufactured housing (mobile homes areineligible). They may be val­ued at no more than HUD’s area limits, and in thecase of acquisition and reha­bilitation, must be free from any health or safetydefect before occupancy.

RESALE PROVISIONS

Assistance to homebuyers is provided in the form ofdeferred, forgivable loans at 0 percent interest. The use of HOME funds carriescertain restrictions on the use of the purchased property, as well as upon anyproceeds realized from the sale of the home if the sale occurs with­in certaintime frames. If the homeown­er moves out or sells the home before this timeperiod has expired, all or a por­tion of the HOME funds must be repaid by thehomeowner.

For more information, contact HOME at (312) 836-5200.