Illinois first-time homebuyer grants and down payment assistance (2026)

IHDA’s four IHDAccess loans and who can use each

The March 2026 matrix lists four programs. Each one sets the assistance as a percentage of the purchase price with a dollar cap ⁠¹:

Scroll the table sideways to see every column.

The percentage and the cap work together. On IHDAccess Home, a $200,000 home gets $12,000 (6%), and any home above $250,000 gets the $15,000 cap. You cannot take less than the maximum: the amount is calculated automatically ⁠¹⁠⁶.

For IHDAccess Home, IHDA counts you as a first-time buyer if neither you nor your spouse has held an ownership interest in a primary residence in the last three years. This includes a non-borrowing spouse. Veterans with a COE or DD214 showing honorable discharge are exempt, and so is anyone buying in a federally targeted area ⁠⁴⁠⁶.

Opening Doors, an earlier IHDA program, does not appear in IHDA’s program directory. SmartBuy, which paid off student loans, closed on Feb. 24, 2025 ⁠³⁠⁹.

How each IHDAccess second mortgage is repaid or forgiven

• IHDAccess Home and IHDAccess Deferred. You make no monthly payment. The full amount is due when you sell, refinance or pay off the first mortgage, or at the 30-year maturity, whichever comes first. There is no prepayment penalty ⁠¹⁠⁴.
• IHDAccess Forgivable. You make no payment, and part of the balance is forgiven each month for 10 years. Only if you sell or refinance before the 10 years end do you repay the part not yet forgiven ⁠¹⁠³.
• IHDAccess Repayable. This is the largest percentage, but it carries a real monthly payment for 10 years, at 0% interest ⁠¹.

Lenders may charge origination of 1% plus $1,200 on the first mortgage. On the second mortgage, the only fee allowed is the recording fee ⁠¹⁠⁶.

IHDA income and price caps by county, effective July 1, 2026

IHDA uses two sets of limits. The “general” limits apply to IHDAccess Forgivable, Deferred and Repayable, with one income cap for any household size. The tighter AccessHome limits apply to IHDAccess Home and depend on household size ⁠². Only people on the note count toward income. A non-borrowing spouse’s income is left out ⁠⁶.

Scroll the table sideways to see every column.

Purchase price caps are the same in every county: $666,354 for one unit or $825,145 for two units under the general limits, and $566,354 or $725,146 under AccessHome limits ⁠².

In a targeted area, the price caps rise to $792,211 for one unit ($986,289 for two), or $692,211 ($886,289) for IHDAccess Home. IHDAccess Home income limits also rise there. The 1-2 person limit ranges from $135,120 in most counties to $145,800 in Cook, Kane, Lake and Will, and the 3+ person limit matches the general limit ⁠². Limits follow the county of the home you buy, not where you live now. To check an address, use the targeted-area map on IHDA’s limits page ⁠⁴.

Credit, DTI and the Finally Home! rule

Credit score. You need a 640 middle score on every loan type. If you have fewer than three scores, the lowest one must be 640 or higher, and IHDA grants no exceptions below 640 ⁠⁶.

Debt-to-income. Total DTI can reach 50% with automated underwriting approval. On FHA, VA and USDA loans, a DTI from 45.01% to 50% needs a 680 score, or an exception below that. IHDA does not allow manual underwriting ⁠¹⁠⁶.

Your money. You must contribute the greater of $1,000 or 1% of the price. Earnest money, an appraisal or inspection you paid, prepaid insurance and properly sourced gift funds count. A tax proration credit does not ⁠⁶.

Property. The home must be a one- or two-unit home, condo, townhouse or community land trust home on less than 5 acres. Manufactured homes are not allowed, and you must move in within 60 days of closing ⁠¹. Non-occupant co-borrowers are not allowed ⁠⁶.

Education. Every borrower must finish a course that meets HUD or National Industry Standards. It must be done no more than one year before closing, and the certificate has to be uploaded before the lender can lock the loan. A course taken after closing makes the loan ineligible. If your DTI is above 45%, the course must be Finally Home!. Otherwise IHDA accepts Fannie Mae HomeView, Freddie Mac CreditSmart Homebuyer U, eHome America, Framework, HUD-certified counselors and its own network of counseling agencies. Through the Community First Housing Counseling Resource Program, 30 agencies, such as the DuPage Homeownership Center and Neighborhood Housing Services of Chicago, offer the course free or at low cost ⁠⁵.

No state MCC since 2020, but Chicago’s TaxSmart is open

IHDA’s Mortgage Credit Certificate program has been suspended since June 17, 2020. IHDA also does not accept MCCs from other issuers on IHDA loans.

The City of Chicago’s TaxSmart program issues Series 2026 MCCs for homes in the city. The credit equals 25% of the mortgage interest you pay each year, up to $2,000. You must apply when you get the mortgage, through a lender on the city’s approved list or one that signs the city’s participation agreement. You cannot get an MCC after closing. You must be a first-time buyer (no home owned in three years) unless you buy in a target area. First-time buyers need in-person HUD-approved pre-purchase counseling; online courses are not accepted. Income limits are $119,900 for 1-2 people and $137,885 for 3 or more, or $143,880 and $167,860 in target areas. A one-unit home can cost up to $544,232, or $665,173 in a target area ⁠¹³.

Chicago’s HomeGrown grant and Cook County’s five-year forgivable loan

HomeGrown Purchase Assistance (City of Chicago). This grant pays down payment and closing costs on a home inside Chicago. It was taking applications on Oct. 20, 2026 ⁠¹⁰. The amount depends on income and on whether the home is in Zone A (neighborhoods with rising prices) or Zone B (low-income census tracts). It can never be more than 25% of the price ⁠¹⁰⁠¹¹.

On the city’s 2026 chart, 80% of AMI for a family of four is $97,200 and 120% is $145,800 ⁠¹².

You cannot own any other property when you buy. You need a fixed-rate mortgage, a back-end DTI of 38% or less, 1% of the price from your own funds, and 6-8 hours of HUD-approved education. Self-paced online courses do not count. The grant is forgiven at 1/60 per month over five years while you live in the home. If you sell, rent the home out, move out or take a cash-out refinance before then, you repay the unforgiven balance ⁠¹¹. HomeGrown cannot be combined with bond-funded programs, including IHDA’s loans and TaxSmart. Chicago buyers have to choose between HomeGrown and the IHDA route ⁠¹¹.

Cook County Down Payment Assistance Program. The county reopened the program on July 20, 2026, with $2 million for phase III. It pays 5% of the first mortgage, up to $25,000, as a second loan forgiven after five years. You can use it for the down payment, closing costs or a rate buydown. Income must be at or below 120% of AMI ($145,800 for four people), with no income limit in Disproportionately Impacted Areas or Qualified Census Tracts. Repeat buyers qualify. The county lists a 620 minimum credit score, and first-time buyers need a HUD-approved course ⁠¹⁴. Club 720, the county’s partner, reports that the funds for the Land Home lending channel are fully allocated. Only a limited amount remains through Wintrust Mortgage, and your first mortgage must come from Wintrust to use it ⁠¹⁵.

Getting an IHDAccess loan through an approved lender, step by step

1. Choose your route

   Outside Chicago, IHDA is the main statewide option. In Chicago, compare IHDA with HomeGrown, because you cannot use both. Repeat buyers outside the city can look at IHDAccess Forgivable, Deferred or Repayable, or at Cook County’s program ⁠³⁠¹¹⁠¹⁴.

2. Check your county’s limits

   Use the July 1, 2026 table, and check the address on IHDA’s targeted-area map if you are near a cap or are a repeat buyer looking at IHDAccess Home ⁠²⁠⁴.

3. Pick an approved lender

   IHDA’s lender page lists 158 approved lenders. It also shows which ones offer the Federal Home Loan Bank of Chicago’s Down Payment Plus program, which can be combined with IHDA loans ⁠⁸.

4. Take homebuyer education early

   Every borrower needs a certificate before the lender can lock the loan. If your DTI may go above 45%, take Finally Home! ⁠⁵.

5. Gather documents

   Bring pay stubs and documents for income from every source, including bonus or overtime. The lender completes IHDA’s income calculator and may ask for a full verification of employment if you are close to the limit. You and any spouse also sign IHDA’s borrower affidavit on first-time buyer status. Veterans add a COE or DD214 ⁠⁴⁠⁶.

6. Get under contract and lock

   Your lender reserves the rate and assistance in IHDA’s TPO Connect system, and the loan must close at that rate ⁠⁶. Funding is not guaranteed until that reservation is placed, and every program was marked as having limited funds on Oct. 20, 2026 ⁠³⁠⁴.

7. Close and move in

   Move in within 60 days. Keep the second-mortgage note, because you will need a payoff from IHDA when you sell or refinance ⁠¹⁠⁴.

If you are turned down, ask the loan officer which rule failed. The 640 score and the DTI cap are IHDA’s own, so no lender can waive them ⁠⁶. HomeGrown applicants get a denial letter that explains the reason, and if funds run out, applicants may be placed on a waitlist ⁠¹¹. Other states are compared on the first-time homebuyer grants page, and other Illinois help is on the Illinois page.