Homebuyer & Homeowner
 

Grants for Homebuyers

 

IHDA allocates funds to a network of partners across the state to administer a number of programs to help Illinois first-time homebuyers attain homeownership affordably. Homebuyers can receive:

Trust Fund Homebuyer Rehabilitation Assistance Program


The program offers financing from the Illinois Affordable Housing Trust Fund to low- and very low-income individuals for acquisition and rehabilitation of vacant properties.

Acquisition Assistance:

Households earning at or below 50 percent of the area median income (AMI) are eligible for a maximum grant amount of up to $5,000. Households earning between 51 percent and 80 percent of the area median income are eligible for a maximum grant of up to $3,000 to purchase a vacant home. Acquisition assistance will be provided as a forgivable grant with a five-year recapture period.

Rehabilitation Assistance:

In addition to acquisition assistance, households may be eligible for up to $20,000 in rehabilitation assistance for home modification repairs and improvements. Rehabilitation assistance will be provided as a forgivable loan with a five-year recapture period.

 

Basic Eligibility Requirements:

  • Property must be a vacant single-family property (mobile homes and properties with more than one unit are not eligible)
  • Household income must be at or below 80 percent of the AMI
  • Homebuyer participants must occupy the property as their principal residence
  • Homebuyer must contribute at least $1,000 or 1% (whichever is greater) to the purchase

How to apply:

Homebuyers must contact one of the IHDA-funded Homebuyer Rehabilitation Assistance participating agencies to apply.

Down Payment and Closing Costs with Rehabilitation Assistance


The HOME Investment Partnerships Program (HOME) provides homebuyers with assistance that can be either in the form of acquisition assistance, or a combination of purchase and rehabilitation assistance.

Homebuyers opting for acquisition assistance only can receive up to $10,000 for down payment and up to $2,000 in closing cost assistance to help with the purchase of their first home. Assistance comes in the form of a deferred, forgivable loan at zero-percent interest.

Homebuyers opting for both the acquisition and rehabilitation assistance can receive a maximum of $40,000 in total costs. Work completed on these homes often features repairs to the major systems and focuses on bringing the home up to current minimum housing standards, and in some cases, increasing the energy efficiency of the home. These funds are provided in the form of a forgivable loan, with a portion of the loan amount forgiven each month over a 5- or 10-year term, depending on the direct subsidy to the homebuyer. If the direct subsidy is below $15,000, the loan is forgiven over 5 years. If the loan is between $15,000 and $40,000, the loan is forgiven over 10 years.

Basic Eligibility Requirements:

  • Household income must be at or below 80 percent of the AMI
  • Homebuyer participants must occupy the property as their principal residence
  • Homebuyer must contribute at least $1,000 to the purchase
  • Homebuyer is required to attend first-time homebuyer counseling


If rehabilitation assistance is received, additional eligibility requirements include:

  • Appraised value of a property after rehabilitation must be under the maximum appraised value ceiling set for a given area
  • Rehabilitated single-family properties must meet both federal and state standards for repair

The use of HOME funds carries certain restrictions on the use of the assisted property, as well as upon any proceeds realized from the sale of the home. If the homebuyer moves out or sells the home before the allotted time period has expired, a portion of the HOME funds may need to be repaid by the homebuyer.

How to apply:

Homebuyers must contact one of the IHDA-funded homebuyer program participating agencies to apply.

Please note:

Some Illinois cities and counties, called HOME participating jurisdictions, receive federal HOME fund allocations directly from the U.S. Department of Housing and Urban Development (HUD) each year. Homebuyers living in any of the following localities should contact a participating jurisdiction directly.

 
Aurora

Lake County

Chicago Madison County
Champaign County McHenry County
Cook County Peoria
Decatur Rockford
DuPage County Springfield
East St. Louis St. Clair County
Evanston Urbana
Joliet Will County
Kane County