Downpayment Assistance for First-Time Homebuyers
New downpayment assistance programs are once again available for first-time homebuyers! Several years ago, these popular programs were halted but as of spring 2011, they are back. Many home buyers took advantage of similar programs in the early 2000′s but during the recession, many of the available programs were eliminated. If you are a first-time homebuyer or haven’t owned a home in the past three years, this loan program is an excellent option. One of the great things about this program is that it’s very easy to qualify. The new SmartMove program offers the following assistance to first time homebuyers in Illinois:
|- up to $6,000 for downpayment assistance & closing costs (10-year forgivable loan with 0% interest)|
|- minimum buyer contribution of 1% or $1,000 (whichever is greater)|
|- may be used with Conventional, FHA, VA or USDA loans|
|- Reduced Mortgage Insurance Premiums|
|- Below-market interest rates|
There are several additional qualifications to apply for this program – you must have a minimum 620 credit score for FHA, VA or USDA and 660 for conventional. There are also additional income and loan limits that vary by region. Also, if you have owned a home in the past but haven’t been a homeowner over the last 3 years, you are eligible for this program. In addition, if you have owned a home in the last 3 years, but are buying a home in certain “targeted” areas, you may also qualify for this program.
If you are going to be buying a home in the near future – do not delay. Apply for the program now. There is no guarantee to how long this downpayment assistance will be available and there is legislation in the works regarding Qualified Residential Mortgages that may make these types of programs go away again. Follow the link below to fill out a contact form and a representative will be in touch regarding this program.