SmartMove Loan Program Offers Assistance to Illinois Buyers

Last month, the Illinois Housing Development Authority (IHDA) announced that $200 million dollars had been committed to the SmartMove loan program, a program designed by IHDA to assist first-time homebuyers and veterans.  Where is all this money coming from? Well, to fund the $200 million necessary for this program, the IHDA is selling tax-exempt mortgage revenue bonds to private investors.

If you qualify for the SmartMove program, you could obtain either a 30-year fixed-rate loan, or FHA, VA, or USDA financing.  You could also receive up to $6,000 towards your down payment and closing costs. This $6,000 (or lesser amount, depending on how much you qualify for) would be in the form of a 10-year, zero-percent forgivable loan.  If your loan requires mortgage insurance, your mortgage insurance rates would be about 1/3 less than the rates offered by conventional sources of mortgage financing.

Of course, you have to meet the requirements.  You must be either a first-time homebuyer or a veteran.  If you are applying for an FHA, VA or USDA loan, your credit score must be at least 620.  If you are applying for conventional financing, your credit score must be at least 660.  You must contribute at least 1% of the purchase price, or $1,000, whichever is more, towards your down payment.  You will be required to attend homeownership counseling.  Income limits apply as well.

SmartMove loans are expected to assist approximately 1,300 families in Illinois buy a home.  Let’s hope it happens!