Statewide Loan Makes
Home ownership Affordable
SmartMove programs offer low-interest rates, down payment assistance
CHICAGO– With spring around the corner, it’s an ideal time for first-time home-buyers (anyone who has not owned their own home for the past 3 years) and Veterans to take advantage of a statewide affordable loan program available through the Illinois Housing Development Authority (IHDA).
SmartMove loan programs enable residents across the state to benefit from historically low interest rates and home prices.
SmartMove features down payment assistance and interest rates as low as 4.5 percent.
SmartMove loan programs offer homeownership opportunities to fit a variety of first-time homebuyer’s needs. Homebuyers who qualify for the 30-year, fixed-rate SmartMove loan also have the option of applying for a second loan for up to $6,000 in down payment and closing cost assistance as a zero-percent loan forgivable over 10 years.
SmartMove programs are geared toward borrowers who need extra flexibility on sources of income, or who have limited funds for down payment and closing costs.
SmartMove features:
- Conventional, FHA, USDA and VA programs
- Streamlined 203(k) FHA loan ideal for buyers of “fixer-upper” foreclosures or short sale homes
- Generous purchase price limits
- Conventional mortgage insurance requirements one-third less than other loan
Getting an IHDA Smart Move Loan
Program Overview
The SmartMove program is designed for qualified buyers who have limited funds for down payment and/or closing costs. The program has several features:
- A first mortgage with an affordable interest rate. See the current rates.
- A second mortgage up to $6,000 for down payment and/or closing cost assistance
- Variety of loan products including FHA, VA, USDA and conventional loans.
Programs steps and process
Step One: Determine if you meet the program qualifications
TheSmartMove program qualifications are:
- You must be a first-time homebuyer. A first-time homebuyer is defined as someone who hasn’t owned a primary residence within the last three years. Exemptions to the first-time homebuyer requirement:
- Veterans: If you are a veteran, both you and your spouse do not have to be first-time homebuyers.
- Targeted Area: Homebuyers purchasing a home in targeted areas of the state are exempt from the first-time homebuyer requirement. Please review the listing of targeted areas.
- Your total household income and the purchase price of your home must be under the program limits. Please review income and purchase price limits.
After you have determined that you qualify for the program, contact me, Sharon Riegert of Baird & Warner Real Estate at 630.718.7523. I will put you in touch with a loan officer from Key Mortgage Services, one of our participating lenders.
The lender will tell you what documentation is required, and verify whether you qualify for the loan based on the above parameters. Additionally, they will qualify you from a credit standpoint. After all information is received, a pre-approval letter will be issued to inform you of the loan amount for which you qualify.
Step Three: Look for a home
Once you are pre-approved for a loan, you can start looking for a new home. I will consult with you to discuss your wants and needs and the entire home buying process.
Once you find a property and sign a contract, the lender will compile a loan package for final review and approval. The information will be reviewed by IHDA staff, as well as by your lender. The average time to complete this process is 30-45 days.
Congratulations
After your loan package is approved, you will close (transfer of the property to you from the seller). Congratulations – you are now a homeowner!
for Illinois Veterans, active military personnel, reservists and Illinois National Guard members.
Welcome Home Heroes is open to all qualified Illinois Veterans.
Active military personnel, reservists and Illinois National Guard members must be first-time buyers.
The Welcome Home Heroes homebuyer financing package
includes a forgivable $10,000 grant for down-payment and closing cost assistance, an affordable interest rate (4 % as of today) for a secure 30-year fixed rate mortgage, and a mortgage credit certificate worth up to approximately $20,000 for the life of the loan.
Welcome Home Heroes program builds on IHDA’s existing affordable home loan program, SmartMove. Income thresholds and purchase price limits apply. Administered by the IHDA, the
package applies to 1-2 unit residential properties that are located in the State of Illinois and are purchased as a primary residence.
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