Down Payment Assistance – First Time Home Buyer in Illinois
These are the steps to get financial help for a first time homebuyer in Illinois.
*Review the full Home Start criteria online. *Contact a loan officer from an approved HomeStart lender and get pre-approved. *Take a 1st time home buyers class. *Find a property that meets the pre-approval parameters. *Close on your first house.
Illinois Home Start Program.
The State of Illinois started a program for first time homeowners to take advantage of the federal stimulus package 1st time homebuyer $8,000 federal tax credit to help more people buy homes. The HomeStart program was changed to offer financial help for low to moderate income borrowers buying a home in the state of Illinois. The First time homebuyer can still get the $8,000 tax credit and they would also qualify for the 1st time home buyer grant as well. To get the financial assistance through the State of Illinois the first step is to understand the program and what help is available. The program is Illinois Home Start and offers a buyer up to 3 per cent of the purchase price of your new home to cover down payment and or closing costs. Illinois does not lend you money but they give you the financial help. The loan comes from a participating lender and the loan is based on the FHA guidelines. The full criteria and program description is listed on the Illinois Housing Development Authority (IHDA) web site.
Approved Lender – Knowledgeable Loan Officer.
Knowing the benefit of free financial help now you contact a participating lender who will qualify you to purchase a home under the FHA Guidelines. The IHDA Program has two additional guidelines that most people who qualify for a FHA loan today will meet. First you must have a minimum credit score of 640 and secondly your debt to income ratio can not exceed 43%. Your loan consultant can help you determine your qualifications and if you will qualify to receive the financial help. When you select a loan officer make sure they are knowledgeable about the Home Start Program, FHA guidelines and other 1st time home buyer assistance programs.
First Time Buyer Class.
After you have been approved and before you close the loan you must take a first time home buyer class through a HUD certified agency. This class will help you understand the basics of financing your new place. It is highly recommended for all first time home buyers. There are online options but, I suggest you take a class in person because you can ask questions and learn from the questions asked by other participants.
Choose Your House.
Once you have been approved to get an FHA loan and qualify for the IHDA financial help, then you and go out and find a home that you like to for no more than the amount that you have been approved to purchase. Once you have found a property and have an accepted offer to purchase said property, your loan officer will register you for IHDA program so you can receive the financial help to purchase your 1st house.
Close Your Loan. Buy Your House.
Finally, the lender closes your loan and at closing you are credited 3% of the purchase price toward your down payment. One last thing to know is that you must have a minimum of $1,000 as your minimum investment to purchase your home. That is a good deal. For as little as $1,000 you can buy your first home by getting down payment assistance in Illinois for First Time HomeBuyers under the Illinois Home Start Program.