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Governor Pritzker announces new homeownership assistance program

Jun 15, 2023 | 10:45 AM

Ervins Strauhmanis / CC

June 15, 2023 – Gov. JB Pritzker recently announced a new initiative, named Illinois HFA1 and administered by the Illinois Housing Development Authority (IDHA), that will help low- and moderate-income Illinoisians purchase homes.

“Every individual, family, and senior in Illinois deserves to have a stable and safe home,” said Gov. JB Pritzker in a press release. “That’s why my administration is ensuring that homeownership is accessible and attainable for every resident. Through Illinois HFA1, we’ll be able to support a new generation of homebuyers and set them up for long-term financial success.”

The program will provide a 30-year first mortgage with a fixed interest rate and $10,000 to assist with down payments or closing costs. The $10,000 is provided as an interest-free second mortgage with a 30-year payment deferral, meaning funds do not need to be repaid until the borrower sells the home, refinances or pays off their mortgage. By offering a competitive interest rate and limiting borrower fees, HFA1’s goal is to make homeownership as affordable as possible. Among rising interest rates and increasing home values, it is expected to assist more than 1,500 new homebuyers, according to the State of Illinois.

“Illinois is stepping up and standing in the gap to create a pathway for people to achieve the dream of owning a home,” said Lt. Gov. Juliana Stratton in a press release. “When we say housing is a right for all, that also includes committing to providing the assistance and support that eases the burden of being able to afford home ownership. Illinois HFA1 is the groundwork to do just that.”

HFA1 is not exclusive to first-time buyers and can be used by buyers in any county in the state. Additionally, in certain circumstances, it can be used in conjunction with other down payment assistance programs. The program was developed over several years in conjunction with lenders from across the state and country, with the aim to encourage lender partnerships with the IDHA. HFA1 also brings a number of operational improvements, including reduced or eliminated loan overlays and aligned mortgage and down payment assistance requirements, to allow access to these partnerships.

Like all IDHA mortgage programs, eligibility for HFA1 is based on the borrower’s credit profile, household income and the home’s purchase price. Pre-purchase homeownership counseling is also required to participate in any IHDA mortgage program. For more information, click HERE.