Illinois Housing Development Authority (IHDA) Programs:
Updated June 2026IHDA offers 30-year fixed mortgages and stackable down payment assistance through IHDA-approved lenders. First-time buyer rules follow the federal definition in most cases (no ownership in the past 3 years); veterans and purchases in targeted areas are generally exempt. Income and purchase-price limits are county-specific — look up exacts before applying at ihdamortgage.org/limits or IHDA's homebuyer page at ihda.org/my-home/getting-an-ihda-loan/.
Illinois Homebuyer Mortgage Programs:
Eligibility: Usually first-time buyers (or veterans/targeted-area buyers); household income and purchase-price limits apply.
Offerings: 30-year fixed mortgages available with FHA, VA, USDA, or conventional (IHDA HFA) products through IHDA-approved lenders.
Key underwriting notes:
- Income limits and purchase-price caps are county-based; check IHDA limits for exacts. (IHDA limits)
- Minimum credit score for IHDA eligibility: 640 (IHDA requires a 640 minimum for most IHDA mortgage products). (IHDA FAQs)
- Debt-to-income guidance: with AUS approval IHDA permits back-end DTI up to 50%. Files with DTI of 45.01%–50.00% must include Finally Home! homebuyer education and FHA/USDA/VA loans require a 680+ credit score in that band. Confirm lender overlays. (IHDA program matrix (March 2026))
- Homebuyer education is required prior to lock for most IHDA products; HUD-approved counseling is available through IHDA partners.
Down Payment Assistance (DPA) Options (IHDA):
IHDA offers multiple second-mortgage DPA options that must be paired with an IHDA first mortgage. Key program highlights from IHDA (March 2026):
- Access Home (IHDAccess Home): 6% of purchase price, up to $15,000 — interest-free, deferred second mortgage (no monthly payment; repayable on sale, refinance, or payoff). See IHDA for occupancy and pairing rules. (IHDA program directory and IHDA matrix)
- Access Forgivable: 4% of purchase price, up to $6,000 — forgivable second mortgage (forgives over a multi-year owner-occupancy period per IHDA rules). (IHDA matrix)
- Access Deferred: 5% of purchase price, commonly up to $7,500 — deferred second mortgage (repay at sale, refinance, or maturity; see IHDA matrix for exact caps).
- Access Repayable: 10% of purchase price, commonly capped around $10,000 — repayable second mortgage with scheduled principal repayment. (See IHDA program matrix.)
Minimum borrower contribution: generally the greater of $1,000 or 1% of purchase price. Confirm full eligibility, pairing and re-subordination rules with an IHDA-approved lender. (IHDA FAQs and IHDA matrix)
Veterans and Public Servants
Veterans are commonly exempt from the first-time buyer rule and may combine VA benefits with IHDA programs. IHDA lists veterans and buyers in targeted census tracts as exemptions for the first-time requirement; local public‑servant or 'heroes' programs vary by jurisdiction — verify with IHDA or the local administrator.
Local Programs (Examples):
Many counties and cities layer local grants or forgivable loans on top of IHDA assistance. Availability and amounts change with local appropriations; contact the local housing office or a HUD-approved counselor for current openings.
Cook County / Chicago area
Cook County Down Payment Assistance: Cook County runs a Market Rate DPA administered with Club 720 and re-opened its application window on July 20, 2026. Check the county page and Club 720 for application details and lender participation. (cookcountyil.gov Down Payment Assistance Program, Club 720 Cook County DPA)
City of Chicago — HomeGrown Purchase Assistance Grant: The City launched the HomeGrown Purchase Assistance Grant in June 2026. Grants vary by location band: Zone A up to $70,000 and Zone B up to $50,000, subject to income banding and purchase-price caps; the program generally requires a fixed-rate mortgage and a five-year primary residency term with staged forgiveness/recapture rules. See the City admin pages for zone lookup, AMI tiers, and layering restrictions (note: some bond-funded programs cannot be layered). (Program admin: NHS Chicago — HomeGrown.)
DuPage County
DuPage-area buyers frequently use regional counseling and partner programs for down payment help. HUD-approved counseling groups such as HomeDupage are a practical first stop for local openings and education.
Peoria / Central Illinois
Peoria and other central Illinois cities offer modest local assistance and counseling. Check City of Peoria housing resources or the local housing authority for current offers. (peoriagov.org Housing)
Additional Information:
- USDA Loans: 100% financing is possible in USDA-eligible rural areas. Income and property eligibility are set by USDA Rural Development; verify eligibility with USDA. (USDA RD)
- VA Loans: 0% down options for eligible veterans and active duty. Check the Department of Veterans Affairs for benefits and eligibility. (VA Home Loans)
- FHA Loans: FHA minimum down payment is 3.5% for borrowers with credit scores of 580+; loan limits and underwriting thresholds vary by county and year — consult HUD and your lender. (HUD FHA mortgage limits)
IHDA programs and local grants change with funding cycles. Start with an IHDA-approved lender and a HUD-approved housing counselor to check eligibility, reserve funds, and current program openings. See IHDA for full program rules: Getting an IHDA loan.
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