The Illinois HOME START Loan Program
for first time homebuyers
Purpose/General Description
The Illinois HOME START Loan Program is designed to help first time homebuyers achieve the dream of homeownership affordably. The HOME START program offers homebuyers two loans: the HOME START 30 Year Fixed Rate Loan and an optional HOME START Down Payment Assistance Loan.
HOME START 30 Year Fixed Rate Loan
As the name suggests, the first loan under the HOME START program is a 30 year fixed rate amortizing loan insured by the Federal Housing Administration (FHA) and serviced by U.S. Bank Home Mortgage. As of September 10, 2009, the interest rate is 5.25 percent and is subject to change in market conditions.
Homebuyers have the option to utilize the HOME START 30 Year Fixed Rate Loan in conjunction with the HOME START Down Payment Assistance Loan, or use the first mortgage on its own.
HOME START Down Payment Assistance Loan
The second loan under the Home Start program is the Home Start Down Payment Assistance (DPA) Loan which allows Illinois first time homebuyers to access additional funds upfront to help with the down payment. The DPA Loan is a 10 year, 0 percent, non-amortizing, forgivable loan in the amount of 3 percent of the purchase price up to $6,000.
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Interest Rates
(as of October 30, 2009)*
Home Start Loan without down payment assistance loan; 5.25%
Home Start Loan with down payment assistance loan: 5.75%
*Rates are subject to change
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IHDA reserves the right to modify or discontinue the Program.