If you are concerned about making a down payment on a home, you are not the only one in that situation. There are a few ways people in Aurora can access down payment assistance. Most down payment assistance (DPA) programs in Aurora are run through the state but speaking with a specialist like those at Compass Mortgage can help you navigate what is available. Here are a few programs that might help you.
For Warrenville DPA programs, look no further than the state itself. There are two down payment and closing cost assistance programs through the state: Down Payment Plus and First Home Illinois.
Down Payment Plus is run through the Federal Home Loan Bank of Chicago. It is a matching program that works on a 3:1 ratio of the buyer’s net contribution. The Federal Home Loan Bank of Chicago can provide a grant of up to $6,000 which can be used for down payment and closing cost assistance, home buyer education costs up to $700, and eligible rehabilitation costs.
Down Payment Plus has certain eligibility requirements. Your total household income cannot exceed 80% of the area median income, and you must contribute at least $1,000 toward the home purchase. You have to attend home buyer counselling before purchasing, to ensure you understand all that home ownership entails as well as how the purchase process works.
You also have to use that home as your primary residence and sign a five-year retention agreement with a lien on the property for the amount of the DPP grant. These grants are forgiven over a period of five years, so if you sell the property, you will repay the grant as pro-rated.
You must meet any loan underwriting criteria. Your lender can help you fully understand the Down Payment Plus program and if it applies to your situation.
First Home Illinois is another Aurora down payment assistance loan, run by the Illinois Housing Development Authority. This is a program for people who are first time home buyers, or veterans. The program combines a 30-year fixed rate mortgage with tangible down payment assistance. The assistance comes in the form of a $7,500 grant which does not need to be repaid.
Applicants are only eligible if they have not owned a home in the last three years or are veterans. To be eligible you must not exceed the county’s income limits and must contribute at least $1,000 or one percent of the purchase price, whichever is greater. There are minimum credit requirements and a home ownership counselling course.
First Home Illinois also sets out property guidelines. This must be your primary residence and the cost must fall under the county’s maximum purchase price limits.
In DuPage County itself, there is a program that those who need a Aurora, IL home loan down payment assistance program can take advantage of. Through the DuPage Homeownership Center, or DHOC, the Homestead Program exists for homes in DuPage County (excluding Aurora and Bolingbrook).
Homestead provides first mortgage financially at interest charges comparable to regular market financing. Then there is a second, interest-free mortgage. There is also a closing grant of up to $3,000 available with no repayment required (this is not available for purchases in Naperville).
Homes cannot exceed $280,000 in cost and cannot be a multifamily dwelling. A home must pass an inspection, not be occupied by a tenant, and not be in a flood zone.
Applicants must attend a homebuyer education course and pay an administration fee to DHOC if the assistance comes through, and buyers close on the home. Buyers must have a minimum 660 credit score and have one mortgage payment in savings. You must be a first time home buyer, with any bankruptcies discharged at least two years prior and at least 24 months of traditional credit reestablished. No applicants can owe tax debts on any level.
Income requirements are based on Housing and Urban Development guidelines and also influenced by family size. You must put down at least five percent for the down payment, with at least one percent or $1,000, whichever is greater, from your own funds.
Compass Mortgage will help you understand your options for Aurora home down payment assistance and home financing. We are both skilled and experienced in assisting would-be homeowners in finding the right financial support. All you must do is apply for a mortgage online.