Buying your first home can be a daunting task. But don’t fret, options are available to help you save money in the process! There are thousands of dollars available for first-time homebuyers through loans and programs in the Chicago area.
Find the right one to save you money on your home purchase.
First-time homeowners, veterans or those who haven’t owned a home in the past three years and are looking to purchase a home in Cook, Marion, St. Clair or Winnebago county can apply for this grant. This grant provides a 30 year, fixed rate mortgage with a $7,500 grant towards down payment or closing costs.
This credit is available to first-time homebuyers or those purchasing a home in an economically troubled census tract. The Mortgage Credit Certificate allows homebuyers to claim a tax credit for a portion of the mortgage interest paid per year. Currently, annual savings are 25% for a purchased home or 50% for a home improvement or rehab loan, and savings are capped at $2,000.
This grant offers 4% (up to $6,000) of the purchase price in assistance for a down payment and closing costs for a home being purchased in any county in Illinois. In addition, the loan is forgiven over 10 years, so it doesn’t need to be repaid with a 30-year, fixed-rate mortgage.
This grant offers 5% (up to $7,500) of the purchase price in assistance for a down payment or closing costs that is interest-free for the life of the mortgage. However, the loan must be repaid when the house is sold, refinanced or paid off.
Keep in mind that most mortgage lending companies have specific homeowner grants and loans to apply for. Make sure to talk to your lender to see what’s available!