First-time homebuyers in Illinois may qualify for down payment assistance and other types of housing programs from the Illinois Housing Development Authority (IHDA).
Search Rates: Check Today’s Rates and Get Pre-Approved
National First-Time Homebuyer Loans
- FHA Loans – FHA home loans are very popular with first-time homebuyers cause they require a 580 credit score with just a 3.5% down payment. Debt-to-income ratios up to 50% are allowed making them perfect for low-income borrowers.
- Conventional Loans – Conventional loans require a 620 credit score and a 5% to 20% down payment. If you put 20% or more down, mortgage insurance will not be required.
- USDA Loans – USDA mortgage loans are for low-to-median income borrowers buying a home located in a USDA-eligible rural area. They provide 100% financing with a 620 or higher credit score. Mortgage insurance is required, but the rate is the lowest of any type of mortgage program available.
- VA Loans – Veterans of the U.S. military may be eligible for a VA home loan. No down payment or mortgage insurance is required, and veterans with a 580 to 620 credit score are eligible.
- HomeReady and Home Possible Loans – Freddie Mac and Fannie Mae created the HomeReady and Home Possible loan programs for low-income first-time homebuyers whose income does not exceed 100% of the area median income requiring just a 3% down payment and a 620 credit score.
IHDA Benefits and Requirements
Benefits
- 10% of the purchase price up to a maximum of $10,000 in down payment and closing cost assistance programs repaid over 10 years
- Up to 50% debt-to-income ratios accepted
- Low fixed-rate mortgage loans
- New construction and existing home are eligible
- Can use in conjunction with government-backed mortgages such as FHA, USDA, and VA loans
Requirements
- 620 minimum credit score required
- Meet the purchase price and household income limits
- Live in the home as your primary residence
- First-time and repeat buyers are eligible
- Illinois residents only
- DACA Recipients and Dreamers eligible
Get Pre-Approved for a Mortgage and Check Rates
Resources for First-Time Home Buyers
- How to buy a house with no money down
- National first-time homebuyer programs
- First-time homebuyer grants
- How to qualify as a first-time homebuyer
- Bad credit home loan programs
Statewide and Regional Programs
- Illinois Housing Development Authority – IHDA helps with mortgage loans, foreclosure prevention, and repair grants.
- Housing counseling agencies – Counseling for buying, renting, foreclosures, defaults, credit issues, and reverse mortgages.
- IL Housing Search Housing Resources
- Illinois Department of Commerce and Economic Opportunity
- Housing Action Illinois
