IHDAccess Forgivable Mortgage Loan

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IHDAccess Forgivable is a mortgage down payment assistance program. Here's what this means for your purchase:

• Repayment: The assistance does not need to be repaid (unless you sell or refinance before 10 years of ownership).

• Forgiveness: The assistance is forgiven every month, meaning the balance is slowly reduced to zero over time until the 10 years have elapsed.

• Assistance: You will receive $6,000 in assistance, which can be used to pay your down payment, closing costs, or both!

• Loan Type: It is available with conventional, VA, FHA, or USDA loan types.

• 1st Mortgage: All IHDA Mortgage programs come with a 30-year fixed-rate mortgage. This is what finances the majority of the home purchase. 

• 2nd Mortgage: The assistance comes in the form of a second mortgage, and is known as a “silent 2nd” meaning you will not receive a statement or have to make monthly payments.

What happens if I sell or refinance before the 10-year forgiveness period?

• You will need to repay the remaining unforgiven balance. For example, if you sold or refinanced 5 years into owning the home, you would need to repay $3,000. 

I'm not a first-time homebuyer, can I still be eligible for the program?

• Yes! You can be a non-first time homebuyer, or a current homeowner and still use the program. You must occupy the new home as your primary residence within 60 days of close. If you retain another property, your loan officer will need to verify whether you can meet program guidelines while being obligated to two properties.

IHDA Mortgage Programs require:

• The purchase of a primary residence. You must be buying a primary residence, we cannot finance a vacation home or other property that will not be your primary residence within 60 days of close.

• Borrower's credit score to be 640 or higher. Lenders use the "middle score" when making this determination, which means when they pull the scores from all three credit bureaus, the highest and lowest scores are set aside and the middle score is used to determine eligibility. If you're a homebuyer with a short credit history and have less than three scores, the lowest score (or only score) is used. 

• Borrower's home to be purchased to be located anywhere in the State of Illinois.

• Borrower's income and home purchase price to fall within the current income and purchase price limits. (It's ok if you're not sure, your lender will calculate this for you). 

• Borrower to contribute a minimum of 1% of the sale price or $1,000 (whichever is greater) towards the transaction. This can include items like earnest money, appraisal fees, pre-paid homeowners insurance, and sometimes gift funds (if allowed, talk to your loan officer to see if this is an option for you). 

• Borrower's debt to income ratio (DTI) to be 50% or lower. This is the total of your revolving monthly debt, the amount of the your new housing payment (principal, interest, taxes and insurance), and items such as car payments, credit card bills, student loans, etc. divided by your gross monthly income (that's the amount before taxes are taken out). If you're not sure, your IHDA Approved Lender will calculate this for you.