EXECUTIVE SUMMARY: Gov. JB Pritzker’s administration is launching a new program offering up to $15,000 in down payment and closing cost assistance for eligible first-time Illinois homebuyers.
WHY IT MATTERS: It comes as Pritzker pushes an affordability agenda that places housing at the center, including proposals to relax restrictions on the development of multi-unit housing, legalize accessory dwelling units and cut red tape that’s slowed homebuilding.
WHAT IT DOES: The Illinois Housing Development Authority program, dubbed Access Home, would combine a 30-year, fixed rate mortgage with up to $15,000 in assistance for existing and new-construction homes.
The assistance is provided as a zero-interest silent second mortgage with repayment deferred for up to 30 years unless the home is sold or refinanced earlier.
Initial funding uses existing sources, including reallocated funds from prior down payment assistance programs, excess single-family indenture liquidity and proceeds from future revenue bond debt issuances.
THE GOAL: The idea is to help working class home buyers enter the market and start building home equity sooner.
QUOTE: “Through Access Home, we are putting real dollars behind our commitment to affordability, helping first-time buyers overcome the biggest barrier to homeownership: the upfront costs,” said IHDA executive director Kristin Faust. “Even if you aren’t sure if you are ready, reach out to one of our housing partners to see if now is the right time to become a homeowner.”
WHO’S ELIGIBLE: Eligibility is based on a borrower’s credit profile, household income, the purchase price of the home and location. In Cook County, the program will be available to first-time homebuyers earning up to $137,885 depending on household size. In Sangamon County, the limit is $131,905.
WHAT WE’RE WATCHING: Certain aspects of Pritzker’s ‘BUILD’ housing plan, especially provisions preempting local zoning control, have drawn significant pushback. But the nearly $250 million in capital investments, including $50 million in additional funds for existing homebuyer assistance programs, have proven more popular.
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