IHDA’s New I-Refi Program Helps Make Refinancing Affordable
The Illinois Housing Department Authority (IHDA) has recently stepped up its programs to make home ownership more affordable. One example of this is the new IRefi program. To qualify for IRefi, you must meet the following criteria:
- Your credit must be good enough to qualify with a participating lender. If you are applying for a VA loan, USDA loan or conventional loan, it must be at least 640. If you’re applying for an FHA loan, your credit must be at least 660. And if you’re applying for a conventional loan where you’re putting down less than 5%, your credit must be at least 680.
- Your existing mortgage must be current during the last 12 months.
- Before IRefi’s assistance, the loan-to-value ratio of your home must be 110% or greater. The goal is for IRefi’s assistance to bring the loan-to-value ratio of your home down to 90-97%. That means you would have at least 3%, and up to 10%, equity in your home after IRefi.
- You will need to provide an appraisal during the loan approval process.
- The appraised value of your home must fall within the limits IHDA has determined for your county. Appraised value limitations are available here.
- Your income must fall within certain limits. The limits vary by county, and take into account how many people are in your household. For more information on income limits, click here.
If you meet these requirements, you can get up to $50,000 in assistance through the federal Hardest Hit Fund program (HHF). Take advantage of this program now to bring your underwater home back afloat!