Down Payment Path

Down Payment Assistance Programs in Illinois

Illinois provides several down payment assistance programs to help homebuyers overcome financial barriers and achieve homeownership. These initiatives are open to a broad range of buyers, ensuring support is available for both first-time and repeat purchasers across the state.

IHDAccess Forgivable Program

The IHDAccess Forgivable Program, offered by the Illinois Housing Development Authority (IHDA), provides financial assistance to cover down payments and closing costs.

  • Offers up to 4% of the home’s purchase price, capped at $6,000.
  • Funds are forgivable after 10 years if the home remains the buyer’s primary residence.
  • Available for FHA, VA, USDA, and conventional loans.
  • Open to buyers who meet income and purchase price requirements.

IHDAccess Deferred Program

The IHDAccess Deferred Program provides down payment assistance with deferred repayment terms.

  • Offers up to 5% of the purchase price, capped at $7,500.
  • No interest or monthly payments; repayment is deferred until the home is sold, refinanced, or the mortgage is paid off.
  • Pairs with IHDA first mortgages to ensure affordability.

IHDAccess Repayable Program

The IHDAccess Repayable Program provides buyers with larger amounts of assistance with low-interest repayment terms.

  • Offers up to 10% of the purchase price, capped at $10,000.
  • Funds are repaid over 10 years at a fixed interest rate.
  • Designed to work with FHA, VA, USDA, and conventional loans.

SmartBuy Program

The SmartBuy Program helps homebuyers manage student loan debt while providing down payment assistance.

  • Offers up to $40,000 toward paying off student loans as part of the mortgage package.
  • Provides an additional $5,000 for down payment and closing costs.
  • Open to buyers meeting program income and purchase price limits.

USDA Rural Development Loans

For buyers in rural areas of Illinois, the USDA Rural Development Loan offers financing with no down payment requirement.

  • Available to low- and moderate-income buyers in eligible rural areas.
  • Can be paired with other assistance programs for closing costs.
  • Offers competitive interest rates and flexible credit requirements.

Local Assistance Programs

Many cities and counties in Illinois offer additional resources to help buyers with down payment and closing costs.

  • Programs in areas like Chicago, Aurora, and Rockford provide grants or low-interest loans.
  • Some initiatives target specific professions, such as educators and public service workers.
  • Eligibility and assistance amounts vary by location.

Illinois’ down payment assistance programs are designed to make homeownership more attainable by reducing upfront costs. Whether you are buying your first home or upgrading, these programs can help you achieve your goal of owning a home in the Prairie State.