Down payment assistance program options through IHDA ACCESS PROGRAMS
The Illinois Housing Development Authority has announced that on February 1, 2018 the At Home Illinois down payment assistance program will be replaced by the Access Programs. there are 3 types of programs to choose from and they offer up to 10,000.00 towards down payment assistance.
Access 4% forgivable
This program offers assistance amount up to 4% of purchase price up to $6k max forgivable over a term of 10 years. There is no monthly repayment Assistance is forgiven pro-rate on a monthly basis
Example : if 6,000 , it will be forgiven @ 50.00 /month
Access 5% Deferred
The assistance amount is 5% of the purchase price UP to 7500 maximum The repayment for the assistance amount is a 0% interest. Full amount due at maturity date or upon “repayment event. Can be repaid at any time.
Access 10% repayable
Assistance amount is 10% of the purchase price. Up to 10,000 maximum for a term of 10 years. the repayment is done 0% interest monthly payment -dpa amount / 120 months. For example if 10,000, payable at 83.33/month
Pro Tip :Remember 10/10/10 if you’re not sure, the answer is probably 10. 10% max da percentage, $10k max amount 10 year term
The access programs have expanded eligibility requirements to qualify them previous first time and non first time homebuyers allowed.
For these programs, both first time homebuyers and non first time homebuyers are eligible but lenders must disclose borrower status
Geographically, there is no county specific requirement .all Illinois counties are eligible across all 3 Access programs.
New construction is also allowed.
Transparently Disclosed as Ihda 2nd mortgages
There is nothing mysterious about the programs. When used, each down payment assistance program takes the position of a second mortgage and that mortgage is disclosed according to trid guide lines.
Key Qualifying factors
Like many other Ihda programs the borrower must be within income limits and the property must be within purchase price limits. The borrower has a minimum contribution of 1% or $1000 (whatever is greater), however properly sourced gift funds can satisfy this. (agency guidelines are followed)
The programs have Minimum credit score of 640 mid score. The credit score for all loan types must be 640 no exceptions. The debt to income back end ratio must be 45%. no exceptions
Pre-purchase counseling is required on all programs pre purchase counseling must be completed before closing Ihda will accept certificates before closing. Ihda will accept certificates completed before closing up to one ear from the completion date.
There is no exception, quick fix or waiver that can be provided for pre-purchase counseling. Most mortgage insurance companies offer pre purchase training online if the borrower in unable to attend a course in person.
1st home Illinois
1st home Illinois will remain intact. For more information on 1st Home Illinois please refer to the earlier post about IDHA 1st homs illinois 7500 down payment assistance program here.
To apply for Down payment assistance contact Tom Mackrola Of Inlanta Mortgage 312 561 7484.