Lake County Gazette

Gov. J.B. Pritzker (D-IL) plans to allocate $15 million to a new homebuyer program created to help low- and moderate-income individuals, families and senior citizens purchase a home. 

“Every individual, family, and senior in Illinois deserves to have a stable and safe home,” Gov. Pritzker said in a recent news release. “That’s why my administration is ensuring that homeownership is accessible and attainable for every resident. Through Illinois HFA1, we’ll be able to support a new generation of homebuyers and set them up for long-term financial success.”

According to WAND-TV, The Illinois Housing Development Authority (IHDA) is the administrator of the HFA1 program. It's estimated that over 1,500 new homebuyers could receive home-purchasing help from HFA1.

Eligible first-time homebuyers will be given a 30-year first mortgage with a fixed interest rate from IHDA and $10,000 towards a down payment, closing costs, or both. Down payment assistance will come as a second, interest-free mortgage with no payments for 30 years. Deferring those payments means a borrower would only have to make payments on that loan once the mortgage is paid off, refinanced, or the home is sold.

HFA1 is open to people across Illinois who don't have to be first-time home buyers and, in some circumstances, could be used with other down payment assistance programs, WAND-TV noted. 

“A large hurdle to buying a home is saving enough money for a down payment, which has become more difficult with home values increasing, rising interest rates, and other obligations such as taking care of a family,” Kristin Faust, IHDA Executive Director, said in the news release. “If you have been on the fence about buying a home, don’t hesitate and reach out to one of our lenders today to discuss your options. You may be surprised how much you can save today and finally have the opportunity to put down roots in a community and build household wealth.”