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May 5, 2024 · Homebuyers must have a minimum credit score of 640; make a minimum contribution to the sale of $1,000 or 1%, whichever is greater; and have an annual income that meets the threshold set for their county, the number of people in their household, and the type of property they’re buying. Both first-time and repeat homebuyers are eligible to apply.
- Lauren Hargrave
- First-Time Homebuyer Programs in Illinois
- Illinois First-Time Homebuyer Qualifications
- Understanding Illinois First-Time Homebuyer Down Payment Assistance
- Other First-Time Homebuyer Loan Programs
- What Are The Best First-Time Homebuyer Loans?
- Home Price Trends in Illinois Major Areas
- What Are The Current Mortgage Rate Trends in Illinois?
Illinois offers a few statewide first-time homebuyer programs through the Illinois Housing Development Authority (IHDA) — their aim is to ease the financial burden of purchasing a home for first-time homebuyersby assisting with down payments, closing costs and affordable mortgage options to eligible individuals and families. 1. IHDAccess Forgivable...
To qualify for Illinois first-time homebuyer programs, work with an approved lender to ensure your annual income and purchase price of your soon-to-be primary residence fall within a program’s limits. You’ll need to maintain a minimum credit score of 640 and keep your DTI below 50%. You must also complete a homebuyer education course and have your ...
Seeking assistance with down payments in Illinois can make homeownership more attainable by reducing the upfront financial burden. Grants, loans or tax credits may be available, easing the cost of purchasing a home.
Conventional loans
Conventional home loans are mortgages that aren’t guaranteed by the government, like FHA or VA loans. Despite demanding higher credit scores than FHA loans and larger down payments than VA and USDA loans, they only require 3% down for first-time buyers, and provide competitive interest ratesand flexible terms for eligible borrowers.
FHA loans
FHA loans are government-backed mortgages designed to make homeownership more accessible to homebuyers of varying financial profiles. And while mortgage rates for FHA loanshave recently fallen close to conventional loan rates, these loans offer more lenient credit qualification requirements, making them a popular choice for first-time homebuyers and those with less-than-perfect credit.
VA loans
VA loans are home loans offered exclusively to military service members, veterans and eligible spouses, which are backed by the U.S. Department of Veterans Affairs (VA). With notably favorable terms — like affordable interest ratesand no down payment requirement — these loans aim to support veterans in achieving homeownership.
Homebuyers have the freedom to choose between different first-time homebuyer loans. When considering conventional, FHA, VA and USDA loans, evaluate your credit, income and other eligibility criteria to help you determine the best loan type. To help with your decision, seek guidance from lenders familiar with these loans who can help you choose an o...
Across the United States, between the fourth quarter 2022 and the fourth quarter of 2023, home prices rose by 6.5 percent, according to the Federal Housing Finance Agency (FHFA) House Price Index. Home prices in Illinois saw higher than average increases, specifically in the Elgin metro area, which increased by 10% year over year and 1.5% from the ...
Since the start of 2024, interest rates in Illinois for both fixed and adjustable rates have moved higher. Rates on 5/1 ARMs have been the most consistent over the year so far, while both 15-year and 30-year fixed loans have seen their rates moved at least a third of a percentage point higher since early January. Check out Illinois interest rates i...
Mar 7, 2024 · Although you'll need at least 1% down, Illinois offers three different down payment assistance programs for home buyers. Each is a second mortgage with various features, including forgiveness.
Jun 27, 2023 · What you need to know: This program offers down payment cash assistance of 4% of the home’s purchase price, up to $6,000. The cash assistance is forgiven monthly without payment over 10 years ...
- Save for a down payment. 🔑 Key takeaway: Your down payment can be less than 20% of the purchase price — $49,562 for the typical home in Illinois — but you'll have to purchase mortgage insurance and pay more interest over the life of your loan.
- Find a great real estate agent in Illinois. 🔑 Key takeaway: Interview multiple agents to find one who knows your target neighborhoods, has experience in your price range, and communicates well.
- Get preapproved for a mortgage. 🔑 Key takeaway: Once you're preapproved for a mortgage, it's imperative that your financial situation doesn't change.
- Choose the right location. 🔑 Key takeaway: Search for neighborhoods where: Home prices are within your price range. Home values are on the rise. The local amenities support your lifestyle.
According to Redfin, the median sale price in Illinois hit $265,900 in January 2024 — an 11.2% increase from one year prior. But in some communities, the numbers have been much higher. In Winnetka, where home prices were up 40.2% year-over-year, the median purchase price was $1.373 million.
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Mar 8, 2019 · 3. 1stHomeIllinois. This state program offers a $7,500 grant toward a down payment and closing costs on a property in Cook, Marion, St. Clair and Winnebago counties. As the name implies ...
