FAQs

Is the down payment assistance available with IHDA products a grant or a loan?

It depends. The $7,500 available with 1stHomeIllinois is a forgivable loan. The borrower does not need to pay it back, as long as they live in the home for five years. If they sell the home within the first five years, a portion of the down payment will need to be paid back to IHDA.

With @HomeIllinois, the borrower will have to pay the $5,000 back. The payment terms are 0 percent interest and 10 years. The monthly payment is $41.67.

My client is a first-time homebuyer. What tax incentives are available to them and how does it work?

The tax savings available to a first-time buyer come in the form of a Mortgage Credit Certificate (MCC). An MCC is a certificate authorized by the federal government and issued by IHDA. It allows a buyer to take 20 percent of their annual mortgage interest paid as a dollar-for-dollar reduction to their annual federal income tax liability. Here is an example to show the MCC benefit:

Basic Assumptions
Adjusted Gross Income $55,000
Loan Amount $135,000
Interest Rate 4.00%
Interest Paid First Year 5.349%

 

Calculation of Benefit
 Without MCC With MCC
Income  $55,000 $55,000
Mortgage Interest Deduction  ($5,349) ($4,280)  (80%)
Taxable Income  $49,651 $50,720
Taxes paid at 15% tax bracket  $7,448  $7,608
 MCC Tax Credit N/A $1,070  (20%)
Income taxes due $7,448 $6,532
Annual Tax savings due to MCC N/A $916

 
I need to complete a tax filing, what is IHDA’s EIN (Employer Identification Number)?

IHDA’s EIN is 362-70-8117

Is the MCC free?

No. The borrower will pay a fee of $350 – $500. However, as you can see in the example above, the cost is made up very quickly. If the borrower’s information mirrors the example above, they would cover the cost in the first year of owning the home.

How do I become an IHDA lender?

See this page for lender requirements and forms.

I have locked myself out of MITAS. How do I get my password reset?

Please contact your MITAS System Administrator at your organization or whomever originally issued you your username and password.

I am trying to upload documents for IHDA review, but the categories are not showing up. What should I do?

Documents can only be uploaded to the first mortgage loan. Retrieve the first mortgage, select the “Document Images” button and the categories will show up.

How can I tell if there are any “unsatisfied conditions” on my loan?

Retrieve the first mortgage through the ILRS website. Once on the “Loan Detail” screen you will see a list of “unsatisfied conditions” at the bottom of the page.

I am trying to reserve a loan, but I am getting a “Duplicate Social Security Number (SSN) error”. Help!

There may already be a loan in the system for that borrower. From the Main Menu select the “View Loan Detail” button and then use the “Cross-Reference” options at the top of the page to search by last name. If you are still unable to locate the borrower, please call the general Homeownership line at 877-456-2656 or email AtHomeIllinois@IHDA.org.

I accidentally reserved a borrower under the incorrect program type. How can I change it?

Please contact your Compliance Specialist at IHDA or call the general Homeownership line at 877-456-2656 or email AtHomeIllinois@IHDA.org.

I keep getting an error when trying to reserve a Conventional loan in MITAS. The error reads “Loan Type 7 Restriction (CONV).” Help!

The “Loan Type Code” on the “Loan Info” page of the application (first page) must read “Fannie Mae – Conventional”. Once updated, please submit the loan.

I am trying to submit the second mortgage for the Down Payment Assistance (DPA) and I am getting the error “second loan amount too large.” What should I do?

There are two possible reasons for this error: 1) you are mistakenly entering the first mortgage loan amount, or 2) you have selected the incorrect second mortgage program. If this is the case, contact your Compliance Specialist at IHDA or call the general Homeownership line at 877-456-2656 or email AtHomeIllinois@IHDA.org.

I am trying to submit the first mortgage and am getting the error “PMI-Funding-Fee.” What should I do?

If you are reserving a loan that has a mandatory Funding Fee, you will need to enter the PMI Funding Fee in both “G” and “N” on the “Details of Trans” screen. If your borrower is a qualified veteran and is exempt from the Funding Fee, insert $0.01 and do not add it to the total loan amount.

I am trying to submit my first mortgage and am getting the error “Base loan amount – 1003 Details.” What should I do?

Please enter in the base loan amount in field “M” of the “1003 Details of Trans” screen.

I keep entering my data in the online ILRS website and my information keeps getting deleted. Why is this happening?

The most common reason why this can occur is if you are using the Google Chrome or Firefox web browsers. We recommend that you use Internet Explorer.

I need to update the total household income for a file but the total amount is not adding up. What should I do?

If you need to enter more income for the mortgagor / co-mortgagor please use the drop-down options on the applicable applicant’s screen through the online ILRS website (i.e. mortgagor or co-mortgagor). Please do not enter information in “Other Household Income” as that amount will not be incorporated into the total household income.

What forms does a non-borrowing spouse need to sign?

He/she needs to sign the Borrower Affidavit prior to closing; signature must be notarized.

Do you need tax returns for a non-borrowing spouse?

Yes, signed tax returns for borrower AND spouse are required, even if the spouse is not on the loan. Income documentation for the spouse is also required. If the income amount is zero, please provide a signed statement.

How many months of bank statements does IHDA require?

Three months of banks statements are required to capture income by quarter.

The IHDA reservation expired but we still intend to close the loan. Can you grant an extension?

Our system does not permit us to extend a reservation. However, you can still close the loan after expiration. You will be assessed a reduction to the service release premium (SRP), which will depend on the date the loan is purchased; reduction is 25 basis points (bps) for every 30 days beyond the initial 60 days. Please notify your compliance specialist at IHDA if you have reached the expiration date but still intend to close the loan so that it can be noted our system.

Does IHDA permit a borrower to receive cash back at closing?

The maximum cash back permitted to the borrower is $250.

Are manually underwritten loans permitted?

At this time, no.

I don’t consider my buyers to be low income. Why should they consider an IHDA program?

IHDA’s homebuyer programs offer safe, fixed interest loans at affordable rates that could allow your buyer to afford more home. Qualified homebuyers can receive up to $7,500 in down payment and closing cost assistance – and it might surprise you who is eligible. See IHDA’s income and purchase limits for additional eligibility information.

What are the purchase price limits to be eligible for IHDA’s loan programs for a single-family home?

The limits may be higher than you would expect. In certain areas, your buyer could still qualify for our programs with a single-family home purchased for $426,585. See IHDA’s income and purchase limits for additional eligibility information.

What are the income limits for a family seeking to purchase a single-family home using an IHDA loan program?

You might be surprised. For example, a family of three or more living in the Chicago area can earn as much as $106,400 and still qualify. See IHDA’s income and purchase limits for additional eligibility information.

Is the down payment assistance available with IHDA products a grant or a loan?

It depends. The $7,500 available with 1stHomeIllinois is a forgivable loan. The borrower does not need to pay it back, as long as they live in the home for five years. If they sell the home within the first five years, a portion of the down payment will need to be paid back to IHDA. With @HomeIllinois, the borrower will have to pay the $5,000 back. The payment terms are 0 percent interest and 10 years. The monthly payment is $41.67.

My client is a first-time homebuyer. What tax incentives are available to them and how does it work?

The tax savings available to a first-time buyer come in the form of a Mortgage Credit Certificate (MCC). An MCC is a certificate authorized by the federal government and issued by IHDA. It allows a buyer to take 20 percent of their annual mortgage interest paid as a dollar-for-dollar reduction to their annual federal income tax liability. Here is an example to show the MCC benefit:

Basic Assumptions
Adjusted Gross Income $55,000
Loan Amount $135,000
Interest Rate 4.00%
Interest Paid First Year 5.349%
Calculation of Benefit
 Without MCC With MCC
Income  $55,000 $55,000
Mortgage Interest Deduction  ($5,349) ($4,280)  (80%)
Taxable Income  $49,651 $50,720
Taxes paid at 15% tax bracket  $7,448  $7,608
 MCC Tax Credit N/A $1,070  (20%)
Income taxes due $7,448 $6,532
Annual Tax savings due to MCC

Is the MCC free?

No. The borrower will pay a fee of $350 – $500. However, as you can see in the example above, the cost is made up very quickly. If the borrower’s information mirrors the example above, they would cover the cost in the first year of owning the home.

I-Refi Frequently Asked Questions (Download as pdf)

Does IHDA need to approve the file prior to closing?

Yes, a complete clear to close file should be submitted for review at least

10 days prior to approximate closing date. Once the loan is reviewed and approved by IHDA a “closing” package containing the Guaranty Letter will be sent to the processor via email. The closing package is to be executed and signed at closing.

Does MITAS need to match the assistance amount?

Yes, however, IHDA will correct the assistance amount according to the documents submitted during the initial and final reviews.

Does IHDA require three years of tax returns?

Yes, all IHDA programs require signed tax returns with most recent year of transcripts OR 3 years of transcripts can be provided in lieu of signed tax returns.

What happens if a borrower has a second lien on title, can they be paid off with I-Refi assistance?

Yes, per Agency guidelines, so that the new end loan is a rate and term

refinance. For example:

  1. FHA – second lien must be “seasoned” with no draws in 12 month
  2. Conventional – second lien must have been purchase money only (DU only – HFA Preferred ONLY – no HARP!)

Can second or higher liens be re-subordinated?

 No.

After receiving a clear to close and ordering an update payoff, does it need to go back to IHDA to update the Guaranty Letter?

No. Once IHDA clears the file to close (and if the payoff figures do not change by more than $2,000) you may close with the same amount of assistance as on the Guaranty Letter. Any amount the borrower receives over $250 plus the appraisal, will be a principal reduction at the closing.

What calculators need to be filled out for I-Refi?

Prior to sending the loan to IHDA for review lenders must fill out both the

Income Calculator and the I-Refi Calculator.

  1. IHDA will re-review income and assistance amount final numbers.As long as payoff or other fees do not change by more than $2,000, even with a new payoff, IHDA does not need to re-review the entire file. The Guaranty Letter and assistance amount will remain the same – and the I-Refi calculator does not need to be updated.

What is the maximum amount of cash back (money leaving the table)?

$250 plus appraisal cost (anything over should be a principal reduction).

Does IHDA require a minimum investment on I-Refi?

 No.

Can the borrower contribute their own funds for closing costs if the I-Refi assistance is not enough?

Yes, from any acceptable source as defined by Agency guidelines.

Any additional questions on I-Refi can be directed to:

Sheri Hannion, Shannion@ihda.org or

Tara Pavlik Tpavlik@ihda.org, (312) 898-3317