Key Takeaways
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Illinois first-time homebuyer programs provide down payment assistance and forgivable loans.
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IHDA Access programs offer up to $10,000 for closing costs or down payments.
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Chicago and Cook County provide local support through CHA and grant programs.
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National mortgage loans, like FHA, VA, and USDA, can supplement state assistance.
If you’re a first-time homebuyer in Illinois, you’re in a strong position. Home prices across the state remain more affordable than the national average, and a wide range of Illinois first-time homebuyer programs offer down payment assistance, closing cost help, and even forgivable loans. Whether you’re purchasing in Chicago, Cook County, or a rural area, the state provides a variety of tools to ease your homeownership journey in 2025.
Illinois Housing Market Overview (2025)
| Market Metric | Data (2025) |
| Median Home Price | $285,600 (Redfin, Feb. 2025) |
| Median Down Payment | $29,500 (ATTOM, Dec. 2024) |
| Most Affordable Counties | Clay, Edwards, Hardin, Mason, Saline |
IHDA Statewide Homebuyer Assistance Programs
The Illinois Housing Development Authority (IHDA) offers three key loan options with down payment support for eligible homebuyers:
IHDA Access Forgivable Mortgage
Offers a 30-year fixed-rate loan with up to 4% of the purchase price (capped at $6,000) as forgivable assistance.
| Requirement | Detail |
| Residence | Must buy in Illinois as primary home, Works with multi-family properties, Available to repeat buyers |
| Credit Score | Minimum 640 |
| Buyer Funds | $1,000 or 1% of home price (whichever is greater) |
| Education | Homebuyer education course required |
IHDA Access Deferred Mortgage
Provides up to 5% of the purchase price (maximum $7,500) as deferred assistance, repaid only if the home is sold, refinanced, or the mortgage is paid off.
| Benefits | Disadvantages |
| No monthly payments required | Must repay when mortgage ends |
| Supports closing and down payments | Not eligible with HFA Advantage loans |
| Multi-family properties allowed | x |
IHDA Access Repayable Mortgage
Offers the largest assistance—up to 10% of the purchase price (max $10,000)—as a 0% interest loan repaid monthly over 10 years.
| Benefits | Disadvantages |
| Larger assistance amount | Monthly repayment required |
| Predictable, no-interest payments | Not eligible with HFA Advantage |
| Multi-family property purchases allowed | x |
Chicago & Cook County Assistance Programs
Local programs in Chicago and Cook County add another layer of financial help for eligible first-time buyers.
Chicago Housing Authority (CHA) Down Payment Assistance
Buyers who receive CHA housing support may qualify for up to $20,000, while other first-time buyers could receive up to $10,000 in assistance.
| Requirement | Detail |
| Location | Must buy within Chicago city limits |
| Education | Homebuyer education required |
| Income/DTI Restrictions | Yes |
| Buyer Contribution | Minimum investment required |
| Benefits | Disadvantages |
| No repayment required | No co-signers allowed |
| Available for single, condo, multi-units | Restrictions on gift funds and credits |
CHA Choose To Own Program
This program helps CHA residents apply their housing voucher toward a mortgage. It includes 15 years of monthly assistance (30 years for elderly or disabled), coaching, and homebuyer counseling.
| Benefits | Disadvantages |
| Long-term financial support | Must meet CHA eligibility guidelines |
| Includes pre- and post-purchase education | Restrictions on income and voucher use |
Cook County Down Payment Assistance (Re-Opening Late June)
Cook County offers up to 5% of the purchase price (max $25,000) as a forgivable grant after five years of residence. Check with the county for updates on program availability.
| Requirement | Detail |
| Credit Score | 640+ |
| Income Limit | 120% AMI (waived in target areas) |
| Property Type | Condo, townhome, PUD, single-family |
| Homebuyer Education | Required for first-time buyers |
| Benefits | Disadvantages |
| No repayment after 5 years | Program is currently paused |
| Supports various property types | x |
National Loan Programs Available in Illinois
Along with Illinois-specific support, first-time buyers can benefit from national mortgage programs:
| Program | Benefit |
| FHA Loan | 3.5% down payment, 580+ credit score |
| VA Loan | 0% down, for eligible veterans or service members |
| USDA Loan | 0% down, available in eligible rural areas |
| HomeReady/Home Possible | 3% down, flexible income guidelines |
Are Illinois First-Time Homebuyer Programs Right for You?
If you’re looking to buy your first home in 2025, Illinois first-time homebuyer programs can offer major savings. From forgivable grants to long-term monthly support, the state and its counties provide real tools to help you overcome upfront barriers.
Contact our team today to explore your options and get pre-approved for the program that best fits your needs.
FAQs: Illinois Homebuyer Programs
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