Monday, August 13, 2012 - Article by: Barb Lanis - The Federal Savings Bank -
The Illinois Housing Development Authority (IHDA) offers many beneficial loan programs that some borrowers may not be familiar with. While an FHA loan is a government run program that allows buyers to borrow money with low down payments (as low as 3.5% down), the IHDA program is built on the framework of an FHA first mortgage but goes one step further by placing a second mortgage (the IHDA loan) on top of a regular FHA loan in order to reduce the down payment requirement to 1% of the purchase price.
IHDA's Home Start Loan Program provides first-time home buyers and veterans access to additional funds upfront to help with their down payment. This program is designed to help these borrowers buy a home they may not qualify for by providing the following: lower interest rates, acceptance of lower credit scores (as low as 620) and down payment assistance up to $6,000.
Another great IHDA program is the Welcome Home Heroes Program, which is open to Illinois Veterans, active military personnel, reservists and members of the Illinois National Guard. Offered in this program is $10,000 in down payment and closing cost assistance on a 30-year fixed mortgage and an option mortgage credit certification to reduce federal income tax liability. Contact me for eligibility requirements. These programs are a great way for borrowers who may otherwise not be eligible for other financing to take advantage of these opportunities, as well as the historically low housing prices and interest rates. Though these two particular programs are strictly offered in Illinois, other states do offer similar programs. Contact me for more information.
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