CHICAGO – Governor JB Pritzker has announced the opening of a new homebuyer
program designed to help increase home purchase accessibility for low- and moderateincome individuals, families and seniors interested in purchasing a home in Illinois.
Administered by the Illinois Housing Development Authority (IHDA), Illinois HFA1
provides $10,000 for down payment and/or closing cost assistance to make buying a home
more affordable. By offering a competitive interest rate and limiting the total fees charged to
the borrower, IHDA programs are designed to be as affordable as possible. This can allow for
substantial savings over the life of the loan. Funding for Illinois HFA1 is expected to assist
more than 1,500 new homebuyers.
“Every individual, family, and senior in Illinois deserves to have a stable and safe home,”
said Governor JB Pritzker. “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.”
“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. Governor Juliana Stratton. “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.”
Under Illinois HFA1, IHDA will provide a 30-year 1st mortgage with a fixed interest rate and
$10,000 in down payment and/or closing cost assistance. The down payment assistance is
provided as an interest-free 2nd mortgage with payments deferred for 30-years, meaning
funds do not need to be repaid until the borrower sells the home, refinances, or pays off their
mortgage. Illinois HFA1 is not exclusive to first-time buyers, may be used by buyers in any
county in the state, and in some circumstances can be used in conjunction with other down
payment assistance programs to increase homebuyer leverage.
“Illinois is a great place to call home and this program is going to allow more people to live
and work here,” said State Senate President Don Harmon (D-Oak Park). “We are
constantly exploring new opportunities to make housing more affordable in order to provide
opportunities to buy that first home and raise a family in the great state of Illinois.”
Illinois HFA1 was developed through a multi-year coordination effort between the Mortgage
Bankers Association, National Council of State Housing Agencies, other industry
stakeholders and Housing Finance Agencies from Alabama, Arizona, California, Colorado,
Idaho, Illinois, Iowa, Massachusetts, New Mexico, South Dakota, Tennessee, Utah and
Washington.
The goal of this effort was to make it easier for lenders to partner with IHDA
and other Housing Finance Agencies in providing affordable mortgages and down payment
assistance to lower-income homebuyers. Towards this end, the HFA1 program features a
number of operational improvements that allow mortgage lenders to partner more
efficiently with HFA programs, including reduced and/ or eliminated loan overlays, common
documents to reduce operational differences, and aligned affordable mortgage and down
payment assistance requirements in numerous areas.
“A large hurdle to buying a home is saving enough money for a down payment, which has
become more difficult with home values increasing, rising interest rates, and other
obligations such as taking care of a family,” IHDA Executive Director Kristin Faust
stated. “If you have been on the fence about buying a home, don’t hesitate and reach out to
one of our lenders today to discuss your options. You may be surprised how much you can
save today and finally have the opportunity to put down roots in a community and build
household wealth.”
Even with historically low inventory and interest rates continuing to rise, IHDA is seeing its
strongest start ever in homeownership production with more than 4,500 new loan
reservations since the beginning of the year. The number of homebuyers who applied for
IHDA Mortgage programs was 58 percent higher in the month of April compared to a year
ago. In 2022, IHDA’s down payment assistance programs helped more than 5,200
households purchase a home in Illinois.
“When you buy a home, you are putting down roots in a community surrounded by friends
and neighbors and have the ability to build household wealth,” said Assistant Majority
Leader Barbara Hernandez (D-Aurora). “The Illinois HFA1 program will help reduce
a large barrier to homeownership by drastically reducing the down payment costs making
buying a home affordable. This will provide opportunities for so many working families to
find a permanent place to call home.”
All IHDA Mortgage programs offer safe and reliable down payment assistance to first-time
homebuyers, qualified veterans and non-first-time homebuyers. All mortgage products are
subject to income and purchase price limits. Eligibility for each product is based on the
borrower’s credit profile, household income and the purchase price of the home. Prepurchase homeownership counseling is required in order to participate in an IHDA
Mortgage program.
“The Illinois HFA1 program is not only helping people find a place to call home, it is
investing in Illinois’ people and communities,” State Senator Mike Simmons (DChicago) said. “This assistance also includes free housing counseling to ensure you are making the best decision for
yourself and your family concerning your financial future. Don’t hesitate and reach out today if you think the time is right to buy your first home or it is time to find a new home.”
Illinois HFA1 is funded through housing bonds issued by IHDA. Interested homeowners can
find additional information and a list of participating lenders at www.ihdamortgage.org