If you’re hoping to buy a home home or condo in Illinois for the first time but are worried about having the money to cover a down payment and/or closing costs, a first-time buyer grant may be the perfect solution.
Simply put, a first-time buyer grant is a gift of money from any number of agencies or local government offices that provides financial assistance to people wanting to make the transition to home ownership. While grants will need to be repaid, others are forgivable loans that can be repaid when you refinance or sell the home.
For additional information about Illinois first-time home buyer grants, check out our comprehensive guide below..
What Our Illinois Home Buyer Grant Guide Includes
- Common Requirements
- First Time Home Buyer Grants Available in Illinois
Common Home Buyer Grant Terms
Each first time home buyer program typically has its own eligibility terms and conditions, so it’s important to speak with a professional about the most up-to-date qualification guidelines. But many grants have the following stipulations:
- Must occupy the home as a primary residence
- Must have low to moderate income
- Must buy within specified purchase price limits
- Must put some money down, often $1,000 or 1 percent of the home’s price
- Must buy in pre-determined locations
- Must take buyer classes or participate in housing counseling.
Common Illinois & Chicago First Time Home Buyer Grants
A wide-range of first-time home buyer grants and programs are available in Chicago and throughout Illinois. Featured below are just some of those programs, but be sure to contact us directly for the most up-to-date information and regulations regarding each grant or program you're interested in learning more about.
NeighborhoodLIFT® program
The NeighborhoodLIFT® program is a national down payment assistance program that is sponsored by Wells Fargo and NeighborWorks® America. NeighborhoodLIFT® provides eligible home buyers with $15,000 in down payment assistance and up to $17,500 for qualified military service members, veterans, law enforcement officers, teachers, firefighters, and emergency medical technicians.
Wintrust Homebuyer Grant Program
The Wintrust Homebuyer Grant Program can offer up to $2,000 to qualifying borrowers and ca be paired with additional federal, state, and local grants and home loan options. To qualify, borrowers must be applying foe their first mortgage, have an annual household income at or below 80% of the HUD median income of the county in which the property is located, complete an approved homebuyer counseling program, and contribute at least $1,000 from personal funds.
DPP Advantage® & Downpayment Plus® Programs
These two programs are administered by the Federal Home Loan Bank of Chicago and offer borrowers up to $6,000 in down payment and closing cost assistance. Any grant secured is forgiven over a 5-year period but home buyers must use a lender that is a member of the Federal Home Loan Bank of Chicago network. Other stipulations include contributing at least $1,000 and a home buyer education course must also be completed as well.