It’s called Downpayment Plus. It is a statewide affordable housing initative administered by the Illinois League of Financial Institutions ( ILFI ) and funded by th Federal Home Loan Bank of Chicago.
What are the requirements of the program?
- Income-qualified households within Illinois are eligable to receive up to $10,000 in downpayment and closing cost assistance to be used in conjunction with the acquisition of owner-occupied one-family and two family dwellings.
- To be eligible for the program, an applicant must have an aggregate annual income that is 80% or less than the area median income. Income limits vary by area and household size, thus, prospective homeowners should contact a mortgage loan department to see if they qualify.
- Income eligible families who wish to purchase a home must apply for home financing and qualify for a mortgage based upon loan underwritting guidelines.
- A homeowner must make a cash contribution of at least $1,000 towards the purchase of the home.
- Pre purchase homebuyer counseling is required of borrowers accessing the program.
- The assistance provided is in the form of a 5 year forgivable grant. If the home is sold for a net gain within 5 years, the borrower must repay from the gain a pro-rata share of the grant. Upon completion of 5 years the grant is totally forgiven.
- The availability of funds under this program is limited and controlled by certain program parameters, therefore, lenders cannot guarantee that all qualified prospective buyers will be able to gain access to the program. Grants will be awarded to qualified applicants on a first come-first served basis until funds are depleted.
I’d be glad to answer any questions you may have or refer you to many of the Rockford, IL lenders working with this program.