Looking for a way to buy a home affordably?

Jennifer — Mon, 25 Jan 2010 22:41:50 +0000

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

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The Cassidy Team: North Shore Realtors » ihda.org

Looking for a way to buy a home affordably?