Down Payment Assistance in Illinois.
These are the steps to get financial help for a first time home buyer in Illinois.
*** Review the full Home Start criteria online. *** Contact a loan officer from an approved Home Start lender and get pre-approved. *** Take a 1st time home buyers class. *** Find a home that meets the pre-approval parameters. *** Close on your first home.
Illinois Home Start Program.
The State of Illinois started a program for first time home buyers to take advantage of the federal stimulus package 1st time home buyer $8,000.federal tax credit to help more people buy homes. The Illinois Home Start program was changed to offer financial help for low to moderate income borrowers buying their home if they have not owned one in the last 3 years. The First time home buyer can still get the $8,000 tax credit and they would also qualify for the 1st time home buyer grant as well. To get the financial assistance through the State of Illinois the first step is to understand the program and what help is available. The program is Illinois Home Start and offers a buyer up to 3 per cent of the purchase price of your new home to cover down payment and or closing costs. Illinois does not lend you money but they give you the financial help. The loan comes from a participating lender and the loan is based on the FHA guidelines. The full criteria and program description is listed on the Illinois Housing Development Authority web site.
Approved Lender – Knowledgeable Loan Officer.
Knowing the benefit of free financial help now you contact a participating lender who will qualify you to purchase a home under the FHA Guidelines. The Illinois Home Start Program has two additional guidelines that most people who qualify for a FHA loan today will meet. First you must have a minimum credit score of 640 and secondly your debt to income ratio can not exceed 43%. Your loan consultant can help you determine your qualifications and if you will qualify to receive the financial help. When you select a loan officer make sure they are knowledgeable about the Home Start Program, FHA guidelines and other 1st time home buyer assistance programs.
First Time Home Buyer Class.
After you have been approved and before you close the loan you must take a first time home buyer class through a HUD certified agency. This class will help you understand the basics of financing your home. It is highly recommended for all first time home buyers. There are online options but, I suggest you take a class in person because you can ask questions and learn from the questions asked by other participants.
Choose Your Home.
Once you have been approved to get an FHA loan and qualify for the Home Start financial help, then you and go out and find a home that you like to for no more than the amount that you have been approved to purchase. Once you have found a home and have an accepted offer to purchase said home, your loan officer will register you for Illinois Home Start so you can receive the financial help to purchase your 1st home.
Close Your Loan. Buy Your Home.
Finally, the lender closes your loan and at closing you are credited 3% of the purchase price toward your down payment. One last thing to know is that you must have a minimum of $1,000 as your minimum investment to purchase your home. That is a good deal. For as little as $1,000 investment you will buy your first home and get down payment assistance in Illinois for 1st Time Home Buyers under the Illinois Home Start Program.
A Mortgage Banker for 20 years I have been able establish relationships with banks, lenders and federal, state and local agencies who offer down payment assistance for first time home buyers. Financing for your real estate projects? Need Down Payment Assistance? http://blog.alldominionmortgage.com You can also email me a louisj@alldominionmortgage.com
Article Source: Down Payment Assistance: 1st Time Home Buyer in Illinois