Looking for a way to buy a home affordably?
January 25, 2010 by Jennifer
Filed under Getting a Mortgage
The Illinois HOME START program offers below-market interest rates and down payment assistance to first-time homebuyers and veterans. Eligibility for each program is based upon household income, family size and the sales price of the home.
HOME START 30-YEAR FIXED RATE LOAN is FHA insured and available at rates below the 30-year fixed market rate
HOME START DOWN PAYMENT ASSISTANCE LOAN is a 0%, 10-yr forgivable loan that provides 3% of the purchase price (up to $6000) to assist with the down payment. This is perfect for buyers who don’t have down payment money, but will be able to pay back the loan immediately after receiving the $8000 tax credit check.
How to apply: An IHDA-approved mortgage lender will review your monthly income, expenses, employment history and credit report to determine if you are eligible. The lender network can be found at www.ihda.org
REQUIREMENTS:
| 30 Year Fixed Rate Loan | Down Paymnt Assist Loan | |
| Eligibility | Income limits apply. See below for details | Must qualify and secure a Home Start 30 year fixed rate loan. |
| Loan Amount | Based on program guidelines. See below for details. | 3% of purchase price up to $6000. This loan must be used towards the down payment. |
| Homebuyer’s Investment | Homebuyer must contribute 1% of the purchase price, or $1000, whichever is greater. This may be used toward the closing costs. | |
| Exclusions | May not be used with a Mortgage Credit Certificate (MCC). | May not be combined with other grant sources funded by the Illinois Affordable Housing Trust Fund or federal home funds. |
| Occupancy | Property must be occupied as the homebuyer’s primary residence within 60 days of closing. Homebuyer must maintain occupancy for the life of the loan. | |
| Fee | Normal fees apply. Discuss with lender | |
| Terms of Loan | 30 year fixed interest rate. As of 12/4/09, the interest rate is 4.75% and is subject to change in market conditions. | 10 year, 0%, non-amortizing forgivable loan. |
| Eligible Property | New and existing one-unit properties and existing two-unit properties. | Same. |
| Underwriting | Must include second mortgage payment in total housing expense ratio. | |
| FICO (credit) score | 620 minimum | |
| Loan to Value (LTV) | 96.5% | |
| Combined LTV | 100% | |
| Ratios | 43% back-end debt to income ratio. | |
| Prepayment | Prepayment is allowed. | The loan is due on sale or refinance of the first mortgage based on the remaining balance that has not been forgiven |
| Loan Servicer | U.S. Bank Home Mortgage | Same |
| Homeownership Counseling
|
Mandatory | Same |
| How to apply | Locate an IHDA lender www.ihda.org | Same |
INCOME & PURCHASE PRICE LIMITS
Maximum Income Maximum purchase price
| Household of 1 or 2 | Household of 3 or more | 1 Unit | 2 Units | |
| Residence in Cook, DuPage, Kane, Lake, McHenry, Will counties | $74,900 | $86,135 | $349,020 | $446,800 |
