Illinois Home Improvement Grants and Mortgage Assistance

Illinois Programs for Home Repairs and Mortgage Help

Homeowners in Illinois have several sources of help for home improvements, mortgage relief, and foreclosure prevention. While not all programs are grant-based, a combination of federally funded aid, state programs from the Illinois Housing Development Authority (IHDA), and nonprofit support can make repairs and housing stability much more attainable for low- and moderate-income owners.

Illinois Homeowner Assistance Fund Home Repair Program (HAFHR)

The Illinois HAFHR is a carve-out of federal Homeowner Assistance Fund dollars dedicated to critical home repairs. Eligible homeowners can receive up to $60,000 for repairs that were delayed or exacerbated by the COVID-19 pandemic. Covered work must address the habitability of the home, such as roofing, plumbing, electrical, HVAC, accessibility upgrades, or lead-based paint remediation.

Eligibility generally tracks the broader ILHAF rules. Household income must be at or below 150 percent of the Area Median Income, the homeowner must certify a financial hardship after January 21, 2020 tied to the pandemic, and the home must be owner-occupied. Applications are processed through IHDA-selected grantees, including organizations like Chicagoland Habitat for Humanity and the Two Rivers Regional Council of Public Officials.

Home Repair and Accessibility Program (HRAP)

IHDA's Home Repair and Accessibility Program (HRAP) is a separate state program that provides grants for health and safety repairs and accessibility modifications. HRAP is administered through a network of local grantees throughout Illinois. Homeowners apply directly to grantees, which manage intake, eligibility determination, and project oversight. The program prioritizes low-income and disabled homeowners and helps people remain safely in their homes.

USDA Section 504 Home Repair in Rural Illinois

Illinois residents in USDA-eligible rural areas can apply for Section 504 Home Repair loans and grants. Loans are capped at $40,000 at a 1 percent fixed interest rate, repaid over up to 20 years, with a combined loan-and-grant cap of $50,000. Grants of up to $10,000 are available to homeowners 62 or older. To qualify, homeowners must have incomes below 50 percent of the area median income, own and occupy the property, and be unable to get credit elsewhere.

Emergency Mortgage Assistance

IHDA previously operated the Emergency Mortgage Assistance (EMA) program to support Illinois homeowners who lost income due to COVID-19. Approved homeowners received up to $15,000 to cover missed mortgage payments. EMA was rolled into the broader ILHAF when federal funds became available, and ILHAF later distributed grants of up to $60,000 for mortgage and housing-related delinquencies. ILHAF closed to new applications in October 2023 after committing its $298.6 million allocation to more than 16,000 homeowners.

Down Payment Assistance

For homebuyers, IHDA offers down payment assistance of 4 to 10 percent of the purchase price through its Opening Doors, SmartBuy, and Access programs, paired with 30-year fixed-rate first mortgages. These programs are not grants but forgivable or deferred-payment second mortgages that support buyers who can sustain a mortgage but lack savings for up-front costs. Income and purchase price limits apply.

A Note on Credit

Most federally funded repair and mortgage programs have income-based eligibility rather than strict credit-score minimums. However, many loan products (including IHDA's first mortgages and USDA Section 504 loans) consider credit history as part of their underwriting. Grant-only programs, like HAFHR and HRAP, typically do not require a specific credit score.

Homeowners with damaged credit should still apply for grant programs, contact HUD-approved housing counselors for free help repairing credit, and ask about local nonprofits that use philanthropic funds to support homeowners with non-traditional credit profiles.

How to Start

Illinois homeowners should begin by calling the Illinois Housing Help line at 866-454-3571, visiting illinoishousinghelp.org, or contacting IHDA directly. Homeowners in rural areas should also contact their local USDA Rural Development office. A HUD-approved housing counselor can help identify every program a homeowner is eligible for and steer applications through to approval.