First-Time Home Buyer Programs in Illinois

Illinois Housing Development Authority (IHDA) Programs:

IHDAccess Mortgage:

Eligibility: Targets first-time homebuyers (no homeownership in the past three years) or buyers in targeted areas of Illinois.
Offerings: Provides a 30-year fixed-rate mortgage (FHA, VA, USDA, or conventional) with down payment assistance options of 4%, 5%, or 10% of the purchase price.
Requirements:

• Income must not exceed county-specific limits (e.g., $123,300 in Cook County for 1-2 people as of 2025).
• Minimum credit score of 640 (or per loan type guidelines).
• Debt-to-income ratio capped at 45% (50% with higher scores).
• Homebuyer education course required for all first-time buyers.

IHDAccess Forgivable:

Benefits: Offers 4% of the purchase price (max $6,000) as a forgivable second loan (forgiven after 10 years) for down payment and closing costs; combinable with IHDA first mortgages.
Eligibility: Must use an IHDA first mortgage; income and purchase price limits apply (e.g., $424,100 for a single-family home in non-targeted areas).

IHDAccess Repayable:

Description: Provides 5% or 10% of the purchase price (max $7,500 or $10,000) as a 0% interest second loan, repayable monthly over 10 years; designed for first-time buyers needing more assistance.
Requirements: Must pair with an IHDA first mortgage; same income and purchase price limits as IHDAccess Forgivable.

Local Programs:

Chicago

Chicago Home Buyer Assistance Program: Offers up to $10,000 as a forgivable loan (forgiven after 5 years) for first-time buyers in Chicago; income must not exceed 80% AMI (e.g., $71,650 for a family of four).

Springfield

Springfield First-Time Homebuyer Program: Provides up to $15,000 as a 0% interest, deferred loan (due on sale or refinance) for down payment and closing costs; targets first-time buyers with incomes up to 80% AMI in Springfield.

Rockford

Rockford Homebuyer Assistance Program: Offers up to $20,000 as a 0% interest, deferred loan (forgiven after 10 years) for first-time buyers; income must be at or below 80% AMI in Rockford.

Additional Information:

• Mortgage Credit Certificate (MCC): Provides a federal tax credit of up to 25% of annual mortgage interest (max $2,000) for first-time buyers or those in targeted areas when using an IHDA mortgage; fee of $500 applies.
• USDA and VA Loans: Zero-down payment options for rural areas (USDA) or veterans/active military (VA).
• FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).