Grants for Homebuyers in Illinois
June 23, 2016 governmentgrantresources.net Staff
Within the state of Illinois, the Illinois Housing Department Administration (IHDA) provides funds to the Illinois Affordable Housing Trust Fund and the
and the HOME Investment Partnerships Program (HOME).
These programs allow qualified, first-time buyers with affordable ways to buy a house. One program allows homeowners to obtain assistance with their down payment and closing costs. The other helps buyers with their downpayment, their closing costs plus an additional sum to be used to rehab their house.
Trust Fund Homebuyer Rehabilitation Assistance Program
This financing option available through the Illinois Affordable Housing Trust Fund is intended for individuals who would not qualify for a traditional home mortgage due to their low or very low income. Funds granted under this provision can be used for buying or rehabilitating a vacant home.
To qualify for a $5,000 grant, an individual must have income equal to or less than 51 percent of the area median income to. Those who earn 51 and not more than 80 percent of the AMI are eligible to receive an amount not to exceed $3,000 to purchase a vacant house. That assistance grant can be dismissed after 5 years.
Many of the homes acquired in these programs are in need of repairs. The households that have acquired a vacant home may find that they are eligible for up to $20,000 of rehab money intended for the improvement and repair of the property and which will be forgiven after 5 years of loan repayment.
The following basic conditions must be met:
the house must be a vacant single-family unit. Mobile homes and multi unit homes are excluded.
Family income can not exceed 80 percent of the AMI.
The home must be occupied by the participating buyer and must be his principal place of residence.
The home buyer must contribute the greater of either a minimum of $1,000 or 1% of the home's price towards the purchase.
Home Buyers are advised to contact one of the participating Homebuyer Rehabilitation Assistance agencies.
HOME Homebuyer Assistance Program
Under the HOME Investment Partnerships Program (HOME), homebuyers can apply for acquisition assistance or a combination of purchase and rehabilitation costs.
The acquisition amount is limited to $10,000 for down payment and up to $2,000 for closing cost assistance.
Home buyers may opt for a total not to exceed $40,000 to cover both the costs of acquisition and funds for rehab. Those funds are often used for major system repairs or to bring the house up to current codes and/or to improve the energy efficiency of the home.
Like manysimilar government programs, the funds are partially forgivable each month over the term of the loan, a period of 5 to 10-years.
Basic Eligibility Loan Requirements:
Income below 80 percent of AMI
Home must be owner occupied
minimum $1,000 homebuyer out of pocket contribution
Counseling for first time buyers is required.
Additional eligibility requirements include:
Appraised value after rehabilitation is complete can not exceed the maximum value amount set for the given area. All Rehabilitated properties must meet all standards set by Illinois and federal codes.
Certain restrictions on the use of the property are in place, including any profits made from the sale. The buyer is responsible for repairs if he move before the allotted time has expired. Not all areas have programs in effect
Contact one of the IHDA-funded 2014-2015 officials in your area.
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