DOWN PAYMENT/CLOSING COST ASSISTANCE
Saving for a down payment can be a difficult task for many
low-income residents of Illinois. To help turn renters into buyers, the
Illinois Housing Development Authority’s Affordable Housing Trust Fund Program
offers low- and very low-income individuals help via down payment and closing
cost assistance.
PARTICIPATING SPONSORS
While individual citizens are not directly eligible for
Trust Fund financing, organizations interested in expanding affordable housing
throughout the state can compete for funding made available, in turn, to
qualifying individuals. Eligible applicants may include groups such as
governmental units, for-profit corporations or not-for-profit corporations. In
addition, sponsors must show an administrative capacity to manage a home buying
process, the capacity to administer a homebuyer counseling program and the
ability to manage the rehabilitation process.
HELP FOR HOMEBUYERS
Through the program, qualified sponsors can provide loans
or grants up to $3,000 for low-income families and $5,000 for very low-income
families to be used toward a down payment and closing costs. All homeowners are
required to provide an equity contribution based on how much they can afford,
with a minimum personal contribution of $500. Buyers also must meet certain
purchase price and income limits set forth by the federal government and are
required to attend an approved homebuyer counseling program.
GETTING STARTED
Applications for Trust Funds are accepted three times each
year and must meet certain criteria for eligibility.
For more information about eligibility, please call (312)
836-5244.