Homeownership within Reach: State Introduces Assistance Program for Low- and Moderate-Income Citizens
The state of Illinois has announced the launch of a new initiative designed to bolster homeownership among its low- and moderate-income residents. Named Illinois HFA1, this program is intended to provide vital support to individuals who wish to secure their own home but find the financial requirements daunting.
The Illinois HFA1 program is offering considerable financial assistance in the form of a fixed-interest, 30-year mortgage along with an additional $10,000 to aid with the down payment and closing costs. The structure of this assistance is especially attractive, as the down payment aid is effectively structured as an interest-free second mortgage, with the repayment deferred for the same 30-year period.
Under the terms of this program, the borrower isn’t required to repay the $10,000 assistance until they decide to refinance their home, sell the property, or pay off the first mortgage in full. This structure can ease the financial burden for the homeowner significantly, allowing them to focus on their monthly mortgage payments without the added stress of repaying the down payment assistance immediately.
What sets the HFA1 program apart is its accessibility. It is not restricted to first-time buyers only, and it is open to potential homeowners in every county of Illinois. Furthermore, the program also accommodates coordination with other down payment assistance programs, providing prospective homeowners with additional opportunities for financial support.
The program is being managed by the Illinois Housing Development Authority, a trusted body with a history of supporting the housing needs of Illinois residents. The introduction of the HFA1 program is a significant step towards making homeownership more achievable for low- and moderate-income citizens, offering them substantial financial assistance and flexible repayment options.
