As an agent, it’s exciting to finally convert that lifelong renter or young family into homeowners. They have the financial means to maintain a mortgage, but what if they only have limited resources for the downpayment or closing costs? This is where IHDA (Illinois Housing Department Authority) downpayment assistance financing may help, here are the options:
Forgivable: 4% of the purchase price up to $6,000, forgiven monthly over 10 years – it’s a loan that does not have to be repaid.
Deferred: 5% of the purchase price up to $7,500, offered as an interest-free loan, deferred for the life of the mortgage – repaid when house is sold, refinanced, or mortgage is paid off.
Repayable: 10% of the purchase price up to $10,000, offered as an interest-free loan – repaid monthly over a 10 year period.
IHDA assistance is available to qualified first-time and some repeat homebuyers, and is applicable to 30-year or fixed-rate mortgages including conventional, FHA, and VA loan programs.
Reach out to one of our Key Mortgage loan officers about qualifying your client for an IHDA product and to learn more about credit requirements, household income and purchase price limits. Key Mortgage is one of IHDA’s top lenders and will navigate your clients through the entire IHDA process. Call or email a Key Mortgage Loan Officer today!