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Have held a CHA voucher or lived in public housing for at least one year
Be in good standing with your existing lease
A household income of at least 50 percent — but no more than 80 percent — of the area median income (AMI)
Seniors or disabled heads of household must earn at least $10,092 annually.
At least one year of positive credit history
At least $3,000 in a bank account, with the ability to continue saving. For seniors, the requirement is $2,000.
Pros:
Access to counseling and assistance pre- and post-purchase
Long-term financial assistance
Cons:
Limited income eligibility
Cook County: Down Payment Assistance Program
This program provides subsidies of up to 5 percent of a home’s purchase price — or $25,000, whichever is less — to be used for a down payment, closing costs and buydowns. If the home remains your primary residence for five years, the assistance is forgiven.
Buy a primary residence in Cook County
Earn up to 120 percent of the county AMI
Minimum 640 credit score
If a first-time buyer, complete a homebuyer education course
Pros:
Open to first-time and repeat buyers
Open to condos, townhomes and planned unit developments (PUDs), as well as single-family homes
Doesn’t require repayment
No income limit for buyers in targeted areas
Cons:
Program is currently on hiatus
Other Illinois first-time homebuyer loans
Along with the IHDA and other Illinois-specific programs, you can explore nationally available loan options that help many first-time buyers, such as:
FHA loans: Loans insured by the Federal Housing Administration (FHA) have more lenient financial requirements than other loans. If you have a credit score as low as 580, you can qualify to put as little as 3.5 percent down on an FHA loan.
VA loans: For eligible active-duty military, veterans and surviving spouses, a loan guaranteed by the U.S. Department of Veterans Affairs (VA) is a great option. These loans typically come with lower interest rates and don’t require a down payment.
USDA loans: Loans guaranteed by the U.S. Department of Agriculture (USDA) also require no down payment, but you’ll need to buy in a designated rural area and meet income limits.
HomeReady and Home Possible loans: HomeReady and Home Possible are loan programs created by government-sponsored enterprises Fannie Mae and Freddie Mac. They’re specifically for first-time homebuyers, requiring only 3 percent down and having more flexible income requirements.
Get started
After you’ve researched first-time homebuyer programs, take these other steps to get ready for homeownership:
Compare Illinois mortgage rates: Shopping with at least three lenders is likely to get you a better deal.
Read reviews of Illinois mortgage lenders: Rates are important, but they’re only part of the picture. Reviews give you a preview of your prospective lenders’ communication, expertise and other factors.
Shop for Illinois homeowners insurance: In most cases, your homeowners insurance premium will make up a part of your monthly mortgage payment. Comparing a few insurers can help you find the coverage you need at a competitive price.
Study the Illinois housing market: This might help you better understand where you can afford to buy — and where you may be eligible for assistance. A qualified real estate agent who has experience with first-time buyers can help with this.
Work on your credit score: It impacts whether you’ll be approved for a mortgage and your mortgage rate. Improving it before you apply will save you money.
Buy a primary residence within the city of Chicago
Meet income requirements, which vary depending on whether or not you receive public assistance
Maximum 50 percent debt-to-income (DTI) ratio
Qualify for a mortgage with a program lender
Contribute at least $3,000 to the purchase, or $2,000 if receiving Social Security. No contribution required for VA borrowers.
Complete a homebuyer education course
Other grants, seller’s credits and gift funds can’t exceed 20 percent of the purchase price.
Pros:
Open to townhomes and condos, as well as single-family homes
Open to multi-family properties
Doesn’t require repayment
Allows 15-, 20-, 25- and 30-year loan terms
Cons:
Non-occupant co-borrowers and co-signers not allowed
Buyer contribution required
Chicago: CHA Choose To Own
Choose to Own enables eligible Chicago Housing Authority residents to apply their housing subsidy toward a home purchase. Participants will receive monthly assistance with mortgage payments for up to 15 years, or 30 if they’re a head of household and disabled or elderly, as well as pre- and post-homebuying education, credit counseling and help connecting with real estate professionals.
Be a first-time homebuyer
Have held a CHA voucher or lived in public housing for at least one year
Be in good standing with your existing lease
A household income of at least 50 percent — but no more than 80 percent — of the area median income (AMI)
Seniors or disabled heads of household must earn at least $10,092 annually.
At least one year of positive credit history
At least $3,000 in a bank account, with the ability to continue saving. For seniors, the requirement is $2,000.
Pros:
Access to counseling and assistance pre- and post-purchase
Long-term financial assistance
Cons:
Limited income eligibility
Cook County: Down Payment Assistance Program
This program provides subsidies of up to 5 percent of a home’s purchase price — or $25,000, whichever is less — to be used for a down payment, closing costs and buydowns. If the home remains your primary residence for five years, the assistance is forgiven.
Buy a primary residence in Cook County
Earn up to 120 percent of the county AMI
Minimum 640 credit score
If a first-time buyer, complete a homebuyer education course
Pros:
Open to first-time and repeat buyers
Open to condos, townhomes and planned unit developments (PUDs), as well as single-family homes
Doesn’t require repayment
No income limit for buyers in targeted areas
Cons:
Program is currently on hiatus
Other Illinois first-time homebuyer loans
Along with the IHDA and other Illinois-specific programs, you can explore nationally available loan options that help many first-time buyers, such as:
FHA loans: Loans insured by the Federal Housing Administration (FHA) have more lenient financial requirements than other loans. If you have a credit score as low as 580, you can qualify to put as little as 3.5 percent down on an FHA loan.
VA loans: For eligible active-duty military, veterans and surviving spouses, a loan guaranteed by the U.S. Department of Veterans Affairs (VA) is a great option. These loans typically come with lower interest rates and don’t require a down payment.
USDA loans: Loans guaranteed by the U.S. Department of Agriculture (USDA) also require no down payment, but you’ll need to buy in a designated rural area and meet income limits.
HomeReady and Home Possible loans: HomeReady and Home Possible are loan programs created by government-sponsored enterprises Fannie Mae and Freddie Mac. They’re specifically for first-time homebuyers, requiring only 3 percent down and having more flexible income requirements.
Get started
After you’ve researched first-time homebuyer programs, take these other steps to get ready for homeownership:
Compare Illinois mortgage rates: Shopping with at least three lenders is likely to get you a better deal.
Read reviews of Illinois mortgage lenders: Rates are important, but they’re only part of the picture. Reviews give you a preview of your prospective lenders’ communication, expertise and other factors.
Shop for Illinois homeowners insurance: In most cases, your homeowners insurance premium will make up a part of your monthly mortgage payment. Comparing a few insurers can help you find the coverage you need at a competitive price.
Study the Illinois housing market: This might help you better understand where you can afford to buy — and where you may be eligible for assistance. A qualified real estate agent who has experience with first-time buyers can help with this.
Work on your credit score: It impacts whether you’ll be approved for a mortgage and your mortgage rate. Improving it before you apply will save you money.
Contribute $1,000 or 1 percent of the purchase price, whichever is greater
Complete a homebuyer education course
Pros:
Open to first-time and repeat buyers
Open to multi-family properties
More affordable interest rates
Assistance doesn’t require repayment
Assistance can be used for down payment and closing costs
Cons:
Buyer contribution required
IHDA Access Deferred Mortgage
Similar to IHDA Access Forgivable, this program offers a 30-year, fixed-rate loan with down payment and closing cost assistance. In this case, eligible borrowers can receive up to 5 percent of the home’s purchase price, up to a maximum of $7,500. The assistance is a no-interest loan that doesn’t require repayment until you sell, refinance or reach the end of your mortgage term.
Pros:
Open to first-time and repeat buyers
Open to multi-family properties
More affordable interest rates
Assistance can be used for down payment and closing costs
Cons:
HFA Advantage loans aren’t eligible
You’ll need to repay the assistance when you pay off your mortgage, even if the home is still your primary residence.
IHDA Access Repayable Mortgage
This IHDA program also includes a 30-year, fixed-rate mortgage and assistance with down payment and closing costs. Borrowers may qualify for a no-interest loan of up to 10 percent of the home’s purchase price — no more than $10,000 — which they’ll repay monthly over a 10-year term.
Pros:
Open to first-time and repeat buyers
Open to multi-family properties
More affordable interest rates
Assistance can be used for down payment and closing costs
Cons:
HFA Advantage loans aren’t eligible
Requires an additional monthly payment
City-specific homebuyer assistance programs
Chicago: CHA Down Payment Assistance
If you receive support from the Chicago Housing Authority, you may qualify for a $20,000 grant toward down payment and closing costs. Note that if you receive a grant, you’ll no longer receive your subsidy. Other Illinois residents may qualify for up to $10,000.
Be a first-time buyer
Buy a primary residence within the city of Chicago
Meet income requirements, which vary depending on whether or not you receive public assistance
Maximum 50 percent debt-to-income (DTI) ratio
Qualify for a mortgage with a program lender
Contribute at least $3,000 to the purchase, or $2,000 if receiving Social Security. No contribution required for VA borrowers.
Complete a homebuyer education course
Other grants, seller’s credits and gift funds can’t exceed 20 percent of the purchase price.
Pros:
Open to townhomes and condos, as well as single-family homes
Open to multi-family properties
Doesn’t require repayment
Allows 15-, 20-, 25- and 30-year loan terms
Cons:
Non-occupant co-borrowers and co-signers not allowed
Buyer contribution required
Chicago: CHA Choose To Own
Choose to Own enables eligible Chicago Housing Authority residents to apply their housing subsidy toward a home purchase. Participants will receive monthly assistance with mortgage payments for up to 15 years, or 30 if they’re a head of household and disabled or elderly, as well as pre- and post-homebuying education, credit counseling and help connecting with real estate professionals.
Be a first-time homebuyer
Have held a CHA voucher or lived in public housing for at least one year
Be in good standing with your existing lease
A household income of at least 50 percent — but no more than 80 percent — of the area median income (AMI)
Seniors or disabled heads of household must earn at least $10,092 annually.
At least one year of positive credit history
At least $3,000 in a bank account, with the ability to continue saving. For seniors, the requirement is $2,000.
Pros:
Access to counseling and assistance pre- and post-purchase
Long-term financial assistance
Cons:
Limited income eligibility
Cook County: Down Payment Assistance Program
This program provides subsidies of up to 5 percent of a home’s purchase price — or $25,000, whichever is less — to be used for a down payment, closing costs and buydowns. If the home remains your primary residence for five years, the assistance is forgiven.
Buy a primary residence in Cook County
Earn up to 120 percent of the county AMI
Minimum 640 credit score
If a first-time buyer, complete a homebuyer education course
Pros:
Open to first-time and repeat buyers
Open to condos, townhomes and planned unit developments (PUDs), as well as single-family homes
Doesn’t require repayment
No income limit for buyers in targeted areas
Cons:
Program is currently on hiatus
Other Illinois first-time homebuyer loans
Along with the IHDA and other Illinois-specific programs, you can explore nationally available loan options that help many first-time buyers, such as:
FHA loans: Loans insured by the Federal Housing Administration (FHA) have more lenient financial requirements than other loans. If you have a credit score as low as 580, you can qualify to put as little as 3.5 percent down on an FHA loan.
VA loans: For eligible active-duty military, veterans and surviving spouses, a loan guaranteed by the U.S. Department of Veterans Affairs (VA) is a great option. These loans typically come with lower interest rates and don’t require a down payment.
USDA loans: Loans guaranteed by the U.S. Department of Agriculture (USDA) also require no down payment, but you’ll need to buy in a designated rural area and meet income limits.
HomeReady and Home Possible loans: HomeReady and Home Possible are loan programs created by government-sponsored enterprises Fannie Mae and Freddie Mac. They’re specifically for first-time homebuyers, requiring only 3 percent down and having more flexible income requirements.
Get started
After you’ve researched first-time homebuyer programs, take these other steps to get ready for homeownership:
Compare Illinois mortgage rates: Shopping with at least three lenders is likely to get you a better deal.
Read reviews of Illinois mortgage lenders: Rates are important, but they’re only part of the picture. Reviews give you a preview of your prospective lenders’ communication, expertise and other factors.
Shop for Illinois homeowners insurance: In most cases, your homeowners insurance premium will make up a part of your monthly mortgage payment. Comparing a few insurers can help you find the coverage you need at a competitive price.
Study the Illinois housing market: This might help you better understand where you can afford to buy — and where you may be eligible for assistance. A qualified real estate agent who has experience with first-time buyers can help with this.
Work on your credit score: It impacts whether you’ll be approved for a mortgage and your mortgage rate. Improving it before you apply will save you money.
Shopping for your first home in the Land of Lincoln? While the median home price in Illinois is up about 7 percent year-over-year, at $285,600, it’s still well below the national median. That’s good news for first-time homebuyers.
Still, especially if you’ve never bought before, coming up with the cash for a down payment can be a challenge. Fortunately, the Illinois Housing Development Authority (IHDA) offers programs that help qualified buyers afford the upfront costs of homeownership.
Illinois homeownership statistics
Median sale price (as of Feb. 2025): $285,600 (Redfin)
Median down payment (as of Dec. 2024): $29,500 (ATTOM)
Most affordable counties: Clay, Edwards, Hardin, Mason, Saline (ATTOM)
Illinois first-time homebuyer programs
IHDA Access Forgivable Mortgage
IHDA’s Access Forgivable Mortgage program packages a 30-year mortgage — which may be a government-backed or a conventional loan — with a no-interest, forgivable loan for up to 4 percent of the home’s purchase price. The assistance can be used for down payment and closing costs and is capped at $6,000. There are no monthly payments required, and the amount is forgiven if the home remains your primary residence for ten years.
Buy a primary residence in Illinois
Meet IHDA income and purchase price limits
Minimum 640 credit score
Contribute $1,000 or 1 percent of the purchase price, whichever is greater
Complete a homebuyer education course
Pros:
Open to first-time and repeat buyers
Open to multi-family properties
More affordable interest rates
Assistance doesn’t require repayment
Assistance can be used for down payment and closing costs
Cons:
Buyer contribution required
IHDA Access Deferred Mortgage
Similar to IHDA Access Forgivable, this program offers a 30-year, fixed-rate loan with down payment and closing cost assistance. In this case, eligible borrowers can receive up to 5 percent of the home’s purchase price, up to a maximum of $7,500. The assistance is a no-interest loan that doesn’t require repayment until you sell, refinance or reach the end of your mortgage term.
Pros:
Open to first-time and repeat buyers
Open to multi-family properties
More affordable interest rates
Assistance can be used for down payment and closing costs
Cons:
HFA Advantage loans aren’t eligible
You’ll need to repay the assistance when you pay off your mortgage, even if the home is still your primary residence.
IHDA Access Repayable Mortgage
This IHDA program also includes a 30-year, fixed-rate mortgage and assistance with down payment and closing costs. Borrowers may qualify for a no-interest loan of up to 10 percent of the home’s purchase price — no more than $10,000 — which they’ll repay monthly over a 10-year term.
Pros:
Open to first-time and repeat buyers
Open to multi-family properties
More affordable interest rates
Assistance can be used for down payment and closing costs
Cons:
HFA Advantage loans aren’t eligible
Requires an additional monthly payment
City-specific homebuyer assistance programs
Chicago: CHA Down Payment Assistance
If you receive support from the Chicago Housing Authority, you may qualify for a $20,000 grant toward down payment and closing costs. Note that if you receive a grant, you’ll no longer receive your subsidy. Other Illinois residents may qualify for up to $10,000.
Be a first-time buyer
Buy a primary residence within the city of Chicago
Meet income requirements, which vary depending on whether or not you receive public assistance
Maximum 50 percent debt-to-income (DTI) ratio
Qualify for a mortgage with a program lender
Contribute at least $3,000 to the purchase, or $2,000 if receiving Social Security. No contribution required for VA borrowers.
Complete a homebuyer education course
Other grants, seller’s credits and gift funds can’t exceed 20 percent of the purchase price.
Pros:
Open to townhomes and condos, as well as single-family homes
Open to multi-family properties
Doesn’t require repayment
Allows 15-, 20-, 25- and 30-year loan terms
Cons:
Non-occupant co-borrowers and co-signers not allowed
Buyer contribution required
Chicago: CHA Choose To Own
Choose to Own enables eligible Chicago Housing Authority residents to apply their housing subsidy toward a home purchase. Participants will receive monthly assistance with mortgage payments for up to 15 years, or 30 if they’re a head of household and disabled or elderly, as well as pre- and post-homebuying education, credit counseling and help connecting with real estate professionals.
Be a first-time homebuyer
Have held a CHA voucher or lived in public housing for at least one year
Be in good standing with your existing lease
A household income of at least 50 percent — but no more than 80 percent — of the area median income (AMI)
Seniors or disabled heads of household must earn at least $10,092 annually.
At least one year of positive credit history
At least $3,000 in a bank account, with the ability to continue saving. For seniors, the requirement is $2,000.
Pros:
Access to counseling and assistance pre- and post-purchase
Long-term financial assistance
Cons:
Limited income eligibility
Cook County: Down Payment Assistance Program
This program provides subsidies of up to 5 percent of a home’s purchase price — or $25,000, whichever is less — to be used for a down payment, closing costs and buydowns. If the home remains your primary residence for five years, the assistance is forgiven.
Buy a primary residence in Cook County
Earn up to 120 percent of the county AMI
Minimum 640 credit score
If a first-time buyer, complete a homebuyer education course
Pros:
Open to first-time and repeat buyers
Open to condos, townhomes and planned unit developments (PUDs), as well as single-family homes
Doesn’t require repayment
No income limit for buyers in targeted areas
Cons:
Program is currently on hiatus
Other Illinois first-time homebuyer loans
Along with the IHDA and other Illinois-specific programs, you can explore nationally available loan options that help many first-time buyers, such as:
FHA loans: Loans insured by the Federal Housing Administration (FHA) have more lenient financial requirements than other loans. If you have a credit score as low as 580, you can qualify to put as little as 3.5 percent down on an FHA loan.
VA loans: For eligible active-duty military, veterans and surviving spouses, a loan guaranteed by the U.S. Department of Veterans Affairs (VA) is a great option. These loans typically come with lower interest rates and don’t require a down payment.
USDA loans: Loans guaranteed by the U.S. Department of Agriculture (USDA) also require no down payment, but you’ll need to buy in a designated rural area and meet income limits.
HomeReady and Home Possible loans: HomeReady and Home Possible are loan programs created by government-sponsored enterprises Fannie Mae and Freddie Mac. They’re specifically for first-time homebuyers, requiring only 3 percent down and having more flexible income requirements.
Get started
After you’ve researched first-time homebuyer programs, take these other steps to get ready for homeownership:
Compare Illinois mortgage rates: Shopping with at least three lenders is likely to get you a better deal.
Read reviews of Illinois mortgage lenders: Rates are important, but they’re only part of the picture. Reviews give you a preview of your prospective lenders’ communication, expertise and other factors.
Shop for Illinois homeowners insurance: In most cases, your homeowners insurance premium will make up a part of your monthly mortgage payment. Comparing a few insurers can help you find the coverage you need at a competitive price.
Study the Illinois housing market: This might help you better understand where you can afford to buy — and where you may be eligible for assistance. A qualified real estate agent who has experience with first-time buyers can help with this.
Work on your credit score: It impacts whether you’ll be approved for a mortgage and your mortgage rate. Improving it before you apply will save you money.
