Illinois has programs in place to help people in the state purchase their home and keep their homes when going through a financial crisis. The Illinois Housing Development Authority (IHDA) oversees all of the programs that the state offers and determines the guidelines and qualifications of qualifying for assistance.
2009 Homeowner Protection Act
This law was signed into effect in 2009 to provide homeowners who are not currently in foreclosure more time to work out an arrangement with their lenders and remain in their home. Homeowners who have applied for bankruptcy do not qualify for this program and assistance is only available for principle residences. The law states that lenders must notify homeowners when they are 30-days past due on their payments and that they have 30 days to enter a counseling program. After entering a counseling program, homeowners have an additional 30 days before foreclosure proceedings can begin. This gives homeowners 90 days to work out solutions with the lenders before losing their homes.
National Foreclosure Mitigation Counseling Program
IHDA administers this federal program in Illinois. The program assists homeowners who are at risk for foreclosure or currently facing foreclosure. Through this program, homeowners are placed in contact with counselors who work with the lenders to achieve relief and prevent foreclosure when possible.
SmartMove Mortgage Products
IHDA offers this mortgage assistance program for low to moderate-income borrowers and those who need assistance on their down payment and closing costs. The program provides up to $6,000 for down payments and closing costs and offers mortgages at up to 100 percent of the home's value. Qualified applicants can receive mortgage insurance at around one-third the cost of traditional insurance. Qualifications include a minimum credit score of 620, first-time buyer and home ownership counseling. This program is exclusively for homes in Illinois.
Home Funds
The Home Program in Illinois provides assistance to low income applicants for mortgages. The funds for the program are allocated by the federal government and managed by IHDA. The program seeks to encourage home ownership for low and very low-income residents. To qualify, applicant's income cannot exceed 80 percent of the medium income for the home's area.
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