Illinois first-time homebuyer grants and down payment assistance programs can help eligible buyers cover up-front costs like down payments, closing costs and even student loan debt.
Programs offered by the Illinois Housing Development Authority (IHDA) as well as similar agencies at the local and county level in various parts of the state can reduce some of the financial barriers that make homeownership feel out of reach.
What's in this article?
Some programs offer true grants, while others provide forgivable, deferred or repayable assistance. Understanding how these programs work can help you compare your options before you start shopping for a home.
If saving enough cash to buy a home feels like the biggest hurdle, Illinois down payment assistance offers support. Statewide programs, county programs and city-specific resources can make homeownership feel more attainable.
Are there first-time homebuyer grants in Illinois?
Yes, Illinois buyers may have access to first-time homebuyer grants and other assistance programs. However, “grant” is often used as a broad term.
In reality, assistance may come in several forms:
- Grant: Funds that may not need to be repaid if program rules are met
- Forgivable loan: Assistance that is forgiven over time, usually if you stay in the home
- Deferred loan: Assistance with no monthly payment, typically repaid when you sell, refinance or pay off the mortgage
- Repayable second mortgage: Assistance that is repaid monthly over a set term
This distinction matters. A program can still be helpful even if it is not a true grant, but buyers need to understand repayment terms before making an offer.
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Illinois first-time homebuyer programs and down payment assistance
Statewide programs are often the best starting point because they may be available to buyers across Illinois. These programs can help with down payment costs, closing costs or other financial barriers.
Here is a quick comparison of the Illinois first-time homebuyer programs, subsequently covered in more detail:
| Program | Possible assistance | Assistance type | Ideal for buyers who . . . |
| IHDAccess Home | Up to $15,000 | Deferred loan | Require moderate down payment and/or closing cost help |
| IHDAccess Forgivable | Up to $6,000 | Forgivable loan | Plan to stay in the home several years; have limited savings for up-front costs |
| IHDAccess Deferred | Up to $7,500 | Deferred loan | Need maximum up-front assistance with repayment down the road |
| IHDAccess Repayable | Up to 10% of home purchase price; maximum of $10,000 | Repayable loan | Rely on maximum up-front help; can afford higher monthly payments later on |
Program availability, assistance amounts, income limits and eligibility requirements may change. Buyers should confirm current program details with a participating lender before making an offer.
IHDAccess Home
IHDAccess Home can help buyers who need more up-front support for a down payment or closing costs. Because the assistance is typically deferred, buyers may be able to reduce cash due at closing without adding another monthly payment.
This option may be worth asking about if your biggest challenge is saving enough money before closing.
IHDAccess Forgivable
IHDAccess Forgivable is the most grant-like IHDAccess option listed here because the assistance may be forgiven over time. Buyers still need to understand the program rules, including what happens if they sell or refinance before the forgiveness period ends.
This option may appeal to buyers who want help up front and hope to stay in the home long enough to meet forgiveness requirements.
IHDAccess Deferred
IHDAccess Deferred helps buyers cover closing costs or down payment funds without adding a monthly repayment. The assistance may still need to be repaid later, often when the home is sold, refinanced or paid off.
This can be a helpful middle-ground option for buyers who want lower up-front costs and a simpler monthly budget.
IHDAccess Repayable
IHDAccess Repayable may provide more assistance up front, but it is typically repaid monthly. That makes it important to compare the benefit at closing with the long-term impact on your monthly budget.
For some households, the added support may still be worth considering.
Local down payment assistance programs within Illinois
In addition to statewide programs, some Illinois buyers may qualify for local assistance. These programs generally depend on where the home is located, even the specific location within the city or county.
FHLBank Chicago Downpayment Plus®
Downpayment Plus® may help income-eligible buyers overcome barriers to down payment and closing costs. The program is available through participating member financial institutions.
Buyers should ask Compass Mortgage whether this program is available for their loan type, income level and purchase location.
Cook County down payment assistance
Cook County has offered down payment assistance that supports buyers with down payment costs, closing costs or mortgage buydowns.
This can be especially helpful for buyers purchasing in Chicago suburbs or other Cook County communities. Program funding and eligibility can change, so buyers should confirm availability before relying on the assistance in an offer.
Chicago homebuyer assistance
Chicago buyers may have access to city-specific resources. Some programs are tied to income, location, property type or city-supported affordable housing opportunities.
Because Chicago programs can be more property-specific, buyers should ask early whether a home qualifies.
Aurora homebuyer assistance
Aurora has offered local homebuyer assistance for eligible buyers purchasing within city limits. Requirements may include income limits, homebuyer education and owner-occupancy rules.
If you are buying in Aurora, ask your lender or the city which programs are currently open.
Who qualifies for Illinois first-time homebuyer grants and assistance?
Eligibility is usually based on three considerations: the buyer, the property and the mortgage. There is no single rule that applies to every program.
Common eligibility factors include:
- First-time homebuyer status
- Household income limits
- Purchase price limits
- Credit score
- Debt-to-income ratio (DTI)
- Property location
- Primary residence requirement
- Homebuyer education
- Approved lender or participating lender requirements
- Available program funding
Many programs define a first-time homebuyer as someone who has not owned a primary residence within the last three years. Some programs may also be open to repeat buyers, veterans or buyers purchasing in targeted areas.
The best next step is to review your full financial picture with a Compass Mortgage loan officer before you start making offers.
Can Illinois homebuyer assistance be combined with FHA or conventional loans?
Some Illinois homebuyer assistance programs may be used with common mortgage options, including conventional, FHA, VA or USDA loans. However, each program has its own rules.
For example, one buyer may qualify for down payment assistance with an FHA loan, while another may be better suited for a conventional loan with a different assistance program.
Compass Mortgage can help you compare:
- Monthly payment impact
- Mortgage insurance requirements
- Down payment needs
- Credit score requirements
- Property eligibility
- Assistance repayment terms
This is especially important if you are trying to combine multiple forms of assistance.
How to apply for Illinois down payment assistance programs
The application process usually starts before you find a home. Waiting until after you are under contract can limit your options.
Here is a smart way to begin:
- Talk with us at Compass Mortgage before home shopping.
- Review your credit, income, debts, savings and student loans.
- Identify statewide and local programs that may be a good fit.
- Confirm income limits, purchase price limits and property requirements.
- Complete any required homebuyer education.
- Get a loan commitment.
- Make an offer with your assistance options already reviewed.
This early preparation can help you shop with more confidence and avoid surprises near the end.
How Get Committed® can help Illinois buyers compete
Down payment assistance can help with affordability, but buyers also need a strong offer. That is where Compass Mortgage’s Get Committed® program can help.
Get Committed® allows you to get a fully vetted loan commitment and lock in your interest rate even before making an offer.
Because a loan commitment is stronger than a standard preapproval, it may help sellers feel more confident in your financing. For eligible buyers, fast closings may also be possible.
Common mistakes with Illinois first-time homebuyer grants
Illinois first-time homebuyer grants can be valuable, but small mistakes can create delays.
Watch out for these common mix-ups:
- Assuming every grant is free money
- Waiting too long to ask for assistance
- Missing homebuyer education requirements
- Forgetting about income or purchase price limits
- Overlooking local programs
- Assuming student loan debt prevents homeownership
- Confusing prequalification with a stronger loan commitment
- Forgetting that program funds can change or run out
A little preparation can go a long way. The sooner you ask about assistance, the more options you may have.
FAQs: Illinois first-time homebuyer grants
Yes, Illinois buyers may qualify for statewide, county or city assistance programs. Some are grants, while others are forgivable, deferred or repayable loans.
The best Illinois first-time homebuyer program depends on your income, location, loan type and financial goals. IHDA programs are a common statewide starting point, while buyers in Cook County, Chicago or Aurora may also have local options.
Some do and some do not. Forgivable assistance may be forgiven over time, deferred assistance may be repaid when you sell or refinance and repayable assistance usually adds a monthly payment.
Yes, student loans do not automatically prevent you from buying a home. There are several avenues to assistance—both statewide and at the local level—that could benefit interested buyers who have student loan debt.
Yes, it is best to talk with a loan officer before home shopping so you can review eligibility, funding availability and program rules before making an offer.
Talk with Compass Mortgage about Illinois first-time homebuyer grants
Illinois’s first-time homebuyer grants and assistance programs can make buying a home feel more like a possibility. The right program depends on your finances, location, loan type and long-term goals.
Compass Mortgage can help you compare options, understand repayment terms and prepare for a stronger offer.
Apply with Compass Mortgage or call us at (877) 635-9795 to speak with a loan officer.