The traditional 20-percent down payment is becoming a thing of the past in Chicago as area programs adapt to the needs of a new generation of potential homebuyers. Millennials, in particular, are often still saddled with college loans and other debt, making it more difficult to come with the down payment needed to purchase a home.
In response, some area home ownership programs are meeting the challenge. Compared to the old 20-percent rule, An FHA loan may only require a 3.5-percent down payment.
There are also some programs that “co-invest” and take on some of the down payment while other programs cover closing costs. In fact, there are several agencies out there that can help with things like low-cost loans, down payment grants and closing costs.
Often, a good credit score is an important part of the process. That’s why there are additionally programs out there that can help potential buyers improve their score, moving another step forward in the process of future home ownership.