Your First Home.

Meet IHDA

The Illinois Housing Development Authority (IHDA) is the state's own housing agency. It's been lending for 30+ years, it has never offered an exotic or predatory loan, and its whole mission is getting working families into homes they can keep. Every IHDA program comes with a 30-year fixed-rate mortgage — your rate never changes — paired with down payment assistance that lowers the cash you need at closing.

That's the key: IHDA doesn't just give you a loan, it hands you money toward the down payment and closing costs. Some of it is a gift you never repay.

Are you a "first-time" buyer?

The definition is broader than people think. In Illinois you count as a first-time buyer if you haven't owned a home you lived in during the last 3 years — so if you owned once but have been renting since, you likely qualify again. On top of that, two groups are exempt from the first-time rule entirely:

• Qualified veterans (with a COE or DD-214 showing honorable discharge).
• Buyers purchasing in a targeted area (certain census tracts the state is working to invest in).

IHDA down payment assistance

IHDA's "Access" programs give you a second loan toward your down payment and closing costs. The difference between them is how (and whether) you pay it back:

• IHDAccess Home (new in 2026) — up to $15,000 (6% of the price). A 0% interest deferred second mortgage: no monthly payment, and you don't repay until you sell, refinance, or pay off the home (deferred up to 30 years). This is the state's biggest first-time program right now.
• IHDAccess Forgivable — up to $6,000 (4%). Forgiven over 10 years — a true gift you never repay as long as you stay in the home 10 years.
• IHDAccess Deferred — up to $7,500 (5%). 0% interest, no monthly payment, repaid only when you sell or refinance.
• IHDAccess Repayable — up to $10,000 (10%). 0% interest, repaid in small monthly payments over 10 years.

Tax credits & student-loan help

• Mortgage Credit Certificate (MCC) — a federal tax credit on a chunk of the mortgage interest you pay every year, for the life of the loan. It can be combined with most programs, and it puts money back in your pocket each tax season (see the File Your Taxes Free module).
• SmartBuy — if student debt is what's holding you back, this program can put money toward paying off student loans plus down payment help, which lowers your debt and makes it easier to qualify. Ask a lender if it's currently funded.

What it takes

• Credit score around 640+. This is the big gate. If you're not there yet, that's fixable — work the Fixing & Building Your Credit module first, then come back.
• Income under your county's limit. Limits vary by county and household size — in Cook County (our area) it's roughly $137,000 for 2026. Only the income of people on the loan counts.
• Purchase price under the county cap, and the home must be your primary residence (single-family, townhome, or eligible condo).
• Your own contribution — usually at least $1,000 or 1% of the price, whichever is greater (earnest money counts).
• A homebuyer education course — an 8-hour HUD-approved class (online about $25–$75, or in person). Veterans are sometimes exempt.

Local help on top

IHDA money can often be combined with city and county programs, pushing total assistance higher — some buyers reach $20,000–$30,000+. Worth checking for our area:

• Cook County and individual south-suburban towns sometimes run their own down payment programs — ask your village or township.
• Chicago Housing Authority offers assistance for CHA residents if you're looking in the city.

Total assistance can't exceed your actual down payment and closing costs, and each program has to approve the stack — but a good lender will layer them for you.

The honest cautions

• The 640 credit floor is real. Below it, most of this is out of reach — so credit repair is step one, not an afterthought.
• The money runs out. These programs work off a set budget and have historically been used up within months. When funding's open, move quickly.
• Documentation is heavy. Expect two years of tax returns, pay stubs, and bank statements. If you're self-employed or 1099, get your paperwork clean early.
• Plan 2–3 months start to close once you add up finding a lender, the class, and underwriting.

From renter to owner

Get your credit to 640 → take the 8-hour homebuyer course → find an IHDA-approved lender and ask specifically about Access Home, Forgivable, Deferred, and the MCC → get pre-approved → shop within your price limit → close, using the assistance to cover your down payment. That's how families who thought they couldn't afford it end up with keys in hand.

And the day you own it, protect it: set up a Transfer on Death Instrument so the home you fought for passes to your family — not a courtroom.

Note: General educational information for 2026; IHDA programs, dollar amounts, income limits, and funding change often and can run out. Confirm current details and your eligibility with an IHDA-approved lender or at ihdamortgage.org before relying on any figure here.