Down Payment Assistance Programs

What is it?

Down Payment Assistance Programs helps reduce or eliminate the upfront cash needed to buy a home by providing
grants or secondary financing for down payment, closing costs, or both.

How does it work?

• DPA may be offered as forgivable
  loans, deferred loans, repayable
  loans, or grants.
• Assistance is layered behind the first
  mortgage and often paired with FHA
  or conventional financing.

Loan types available

FHA, Conventional (HomeReady® /Home Possible® / HFA programs), VA, USDA.  Down Payment Assistance are also stackable.

Where available in Illinois

• Lender-based DPA programs are
  available. Include repayable,
  forgivable and grants.
• Statewide via IHDA. County or local
  programs may exist in Cook,
  DuPage, Kane, Will, and Lake
  counties.

Qualification requirements

• Primary residence
• Minimum credit score (typically 620–
  640)
• Homebuyer education often
  required income
• Purchase price limits may apply
• There may be limits based on the type of
  employment or other depending on
  the grant (e.g., grants for first
  responders)

What is IHDA?

The Illinois Housing Development Authority (IHDA) is the state housing finance agency that helps Illinois residents
purchase primary residences by pairing a 30-year fixed-rate mortgage with down payment and closing-cost assistance.

IHDA programs are designed for first-time buyers, repeat buyers, and veterans, depending on the program, and are available statewide through approved lenders

What Types of Assistance does IHDPA offer?

IHDA assistance is provided as a second mortgage, layered with the first loan:

• Access Forgivable – 4% of the purchase price (up to $6,000), forgiven monthly over 10 years
• Access Deferred – 5% of the purchase price (up to $7,500), 0% interest, repaid only when the home is sold, refinanced, or paid off
• Access Repayable – Up to 10% of the purchase price (max $10,000), repaid monthly at 0% interest
• Specialty programs such as student loan relief or Access Home (first-time buyers only)
• All programs are paired with 30-year fixed-rate mortgages

Loan Types Compatible with IHDA
IHDA assistance can be combined with:

• FHA, Conventional (Fannie Mae HFA Preferred / Freddie Mac HFA Advantage), VA, USDA
• This flexibility allows buyers to choose the loan structure that best fits their credit, income, and long-term goals.

Chicagoland MSA Income Limits (2025–2026)
For IHDA assistance in this MSA:

• Maximum income limit: $134,520 (non-targeted areas, borrower only income)
• Purchase price limit: Approximately $610,000 for a one-unit
  property

Key Eligibility Rules & Requirements

• Property must be a primary residence
• 30-year fixed-rate mortgage required
• Minimum credit score: typically, 640
• Maximum DTI: up to 50% (program- and loan-dependent)
• Minimum borrower contribution: Greater of $1,000 or 1% of purchase price
• Homebuyer education required prior to closing

IHDA uses its own income calculation, which may differ from
automated underwriting income totals

Who Can Offer IHDA Loans?
IHDA-approved lender, which may include:

• Banks, Credit unions, Retail mortgage lenders, Independent mortgage bankers, Mortgage brokers (when partnered with IHDA-approved investors)

Important Notes for Buyers & REALTORS®

• IHDA funds are not guaranteed until reserved
• Programs change periodically based on funding and state guidelines
• Buyers should get pre-approved with an IHDA-approved lender early
• IHDA can often be combined with gift funds, seller credits, and lender credits

Work with your lender to identify City and our County DPA programs

• Illinois homebuyer program & DPA
• Illinois Housing Development Authority (IHDA)