The state of Illinois started a huge advertising campaign 2 weeks ago for a new program called “Welcome Home Illinois”. Your members may be calling for more information. The program gives 1st time home buyers (a buyer who hasn’t owned a home in the last 3 yrs. ) $7,500 towards the purchase of a new home which is a forgiven loan after 5 yrs .
The interest rate is set by the Illinois Dept. Of Affordable Housing and they are offering below market rates. There are income limitations and they go by total household income not applicant income , a family of 3 or more can’t make more than $106,000.00
- $ 7,500 forgiven loan after 5 years
- Below market interest rate
- Reduced PMI rates
- As little as 3% down
- Down payment can be 100% Gifted
- Conventional , FHA and VA products available
I’ve worked with the state’s down payment assistance programs for many years and the down side had always been that the state’s interest rates were always .50% – .75% higher than what I could offer in the secondary market. This is the 1 st time they are offering below market rate so there’s really very little downside.