For many would-be homeowners, the down payment is one of the hardest parts to contend with. It can be challenging to come up with that money in cash, especially when lending terms preclude gifts. Never fear, DPA programs in Chicago, can make all the difference.
Down payment assistance programs can greatly reduce the stress, while saving home buyers a lot of money. Whether they are fully forgivable grants, or loans that will not come due for quite some time, these programs provide much-needed assistance. Home buying can be stressful enough, why not look into how you can save money?
There are a few ways to access a home down payment assistance program in Chicago. Some of these are run at the state level and are accessible to everyone in Illinois. Others are specifically for Chicago or Cook County residents. Working with a reputable lender like Compass Mortgage can help you find the program that best fits your situation and needs.
The Micro Market Recovery Program (MMRP) Purchase Assistance Grant will help buyers purchase a home in one of Chicago’s MMRP areas. This grant offers up to $15,000 in down payment assistance for a home in these areas. As with most Chicago down payment assistance programs, there are certain eligibility conditions. Of course, this program is only applicable in Chicago’s MMRP areas.
MMRP Purchase Assistant Grant applicants must be a first time homebuyer or have not owned a home in the past three years. They must plan to live in the home they buy, and it must be a single-family home or condominium. There are income eligibility requirements, and a home buyer workshop that applicants must attend.
The MMRP Purchase Assistant Grant is designed for low to moderate income households. The program verifies income with tax returns and other documents. Successful applicants can use the grant with a conventional loan or FHA financing. Because this is a grant program, the money does not need to be repaid.
First Home Illinois is a program open to certain counties, Cook County being one of them. If someone is a first time homeowner (or has not owned a home in three years) or is a veteran, they may be eligible. First Home Illinois offers both a mortgage and $7,500 in down payment assistance as a grant.
People who use this program must contribute $1,000, or one percent of the home’s purchase price, whichever is greater. There is a credit score requirement and purchase limits as well.
There are three IHDAccess programs that can assist in obtaining a Chicago DPA loan for a home.
IHDAccess Forgivable is open to buyers in Illinois who can contribute $1,000 or one percent of the home’s purchase price. As the name indicates, this is a forgivable grant that does not need to be repaid. It offers four percent, or up to $6,000 of a home’s purchase price as a down payment assistance fund. It is forgiven over 10 years.
IHDAccess Deferred follows similar eligibility requirements but offers five percent, up to $7500, of a home’s purchase price for a Chicago down payment assistance loan. The loan must be repaid when the home is sold, refinanced, or paid off. This is an interest-free loan.
Finally, there is IHDAccess Repayable. This program provides down payment or closing cost assistance that must be repaid over 10 years. It is open to any home buyer, with credit score requirements and purchase limits.
IHDAccess Repayable offers down payment assistance of up to 10 percent of the home’s closing cost, or $10,000. The home buyer must contribute $1,000, or one percent of the home’s purchase price. The funding is interest-free and repaid monthly over 10 years.
For Federal Home Loan Bank of Chicago members, there are two programs that may help: Downpayment Plus and Downpayment Plus Advantage. Downpayment Plus offers a forgivable grant, and Downpayment Plus Advantage is for those in home ownership programs that provide mortgage financing to the buyer. Both of these Federal Home Loan Bank of Chicago programs offer up to $6,000 for home buyers.
These are just a few of the home loan down payment assistance programs available to people living in Chicago. There are a wide variety of home ownership assistance grants, loans and programs open to people who need assistance for their dream home. If you are worried that home ownership is out of your reach because you do not have enough for a down payment, do not be discouraged.
Our team at Compass Mortgage can help you access down payment assistance programs in Chicago. Contact us today and see how we can help you move into the home of your dreams faster and with less stress than you ever thought possible.