First Time Home Buyers in Chicago
Buying your first home in Chicago is an exciting time, as it is likely the biggest purchase you have made thus far in your lifetime. That being said, it can be intimidating to purchase a home since it is a large amount of money, and typically people don’t have enough money to buy a home outright.
Luckily, there are many different programs that offer assistance to first time home buyers in Chicago!
There are four main National first-time home buyer assistance programs. These four programs are available to citizens of the United States, no matter which state you live in you are eligible for these four programs!
These four are Conventional Mortgage, FHA loans, VA loans and USDA loans.
- Great for low down payments
- Best for people who want limited mortgage insurance premiums
- Can have as low as 3% down
- With 20% down – no need to pay mortgage insurance
- Minimum credit score requirement of 620
- Best for people who have a low credit score
- Allows low down payments
- FHA loans are through the Federal Housing Administration
- Minimum credit score of 500
- 10% down payment needed for lowest credit score (500)
- Preferred credit score of 580 or higher – with down payments as little as 3.5%
- Must have mortgage insurance
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There are also loans that are specifically for the state of Illinois that are perfect for people who are buying their first home in Chicago!
The IHDA Loan is provided by the Illinois Housing Development Authority, and is universally used in any county within the state of Illinois.
This means that anyone who is a permanent resident in the state is eligible for this loan option.
- Assistance provided in cash to borrowers who need help with down payments or closing costs
- Options for non-repayment programs
- Some IHDA loans offer a 30-year fixed rate
In order to receive this loan, you have to apply and meet the following requirements:
- Credit score of 640 at the minimum
- Must be able to make monthly payments and show proof of steady income
- 1% of the purchase price or $1,000 down if 1% is less than $1,000 is required
- This home must be your permanent and primary residence
- Each borrower is required to complete homeowner’s counseling
There are plenty of options for first time home buyers who live in Chicago, so make sure to check out these choices and pick the one that is best for you!
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