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Closing Cost Assistance Programs for Illinois

By Colleen Colkitt

Smartmove Mortgage Financing Program

This program has three elements to it, including a 30-year first mortgage with affordable interest rates, an optional mortgage credit certificate to lower federal income tax liability, and also a second mortgage of up to $6,000 for down payment and closing cost assistance. The closing cost assistance is for first-time homebuyers, and it is a beneficial part to a homebuyer package.

To qualify, one must be a resident of Illinois and not previously owned a residence in the past three years. In addition to this, military veterans are exempt from certain requirements because they do not have to be first-time buyers to get the benefits of the closing cost assistance program. Certain guidelines are put in place concerning the income of the household and purchase price guidelines.

Military Heroes

The Welcome Home Heroes program, through the Illinois Housing Development Authority, helps Illinois military veterans and personnel with financing their home. The program assists with the mortgage and down payment and closing costs. It offers a $10,000 forgivable loan over two years for down payment and closing cost assistance.

This applies to one-to-unit properties that will be primary residences, as well as those military applicants who meet income and purchase price guidelines.

Illinois Building Blocks

The Illinois Building Blocks Pilot Program is a program targeted towards certain Illinois communities which experienced widespread foreclosures. Through the housing Development Authority, this initially includes Berwyn, Maywood Park Forest, Chicago Heights, and South Holland. There are multiple areas added to the list, including Melrose Park, Peoria, Campaign, Cicero, Crest Hill, Belleville, Blue Island, Joliet, Lockport, and Lynwood.

The Building Blocks program offers a 30-year fixed rate mortgage with a lower interest rate. It's a $10,000 down payment assistance program, which also can be used for forgivable loan, over two years, for closing costs as well.

Downpayment Plus

The Downpayment Plus Program gives assistance to Illinois residents through the Affordable Housing Program of the Federal Home Loan Bank of Chicago. This program helps with down payments and closing costs. There is a maximum amount of $6,000 in grant money, with exceptions when the first mortgage amount is less than $24,000, which will result in a 25% reduction of the first mortgage amount.

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