Illinois First-Time Home Buyer Programs 2026: IHDA Guide

IHDA Programs Overview

The Illinois Housing Development Authority (IHDA) is the state housing finance agency, offering affordable first mortgages paired with down payment assistance. IHDA works through approved lenders statewide, including all Chicago-area counties.

IHDA's main offering is the IHDAccess suite — three assistance options with different repayment structures. All three can be paired with FHA, VA, USDA, or conventional first mortgages.

IHDAccess Forgivable: $6,000 That Disappears

IHDAccess Forgivable provides 4% of the purchase price up to $6,000 as a second loan that is forgiven monthly over 10 years. Each month you live in the home, 1/120th of the balance is forgiven — stay the full 10 years and you owe nothing.

There is no monthly payment and no interest. If you sell or refinance before year 10, you repay only the unforgiven portion. This is the best option for buyers who plan to stay put and want zero added monthly cost.

On a $150,000 home (common in many Illinois markets outside Chicago), 4% provides the full $6,000 — covering most of an FHA down payment plus part of closing costs.

• 4% of purchase price, up to $6,000
• Forgiven monthly over 10 years (1/120th per month)
• No monthly payment, no interest
• Repay only unforgiven balance if you sell early
• Pairs with FHA, VA, USDA, or conventional first mortgage
• Minimum 640 credit score

IHDAccess Deferred: $7,500 With No Monthly Payment

IHDAccess Deferred provides 5% of the purchase price up to $7,500 as a 0% interest second loan. There are no monthly payments — the full balance is due only when you sell, refinance, or pay off your first mortgage.

This option gives you more assistance than the Forgivable version with the same zero-monthly-payment structure. The trade-off: the balance never shrinks, so you repay the full amount whenever you exit the loan.

Best for buyers who want maximum upfront help, expect to stay in the home a while, and are comfortable repaying the assistance from sale proceeds later.

• 5% of purchase price, up to $7,500
• 0% interest, no monthly payments
• Full balance due at sale, refinance, or payoff
• More assistance than Forgivable option
• Pairs with all major loan types
• Minimum 640 credit score

IHDAccess Repayable: Up to $10,000

IHDAccess Repayable offers the largest assistance amount: 10% of the purchase price up to $10,000. It is a 0% interest second loan repaid in equal monthly installments over 10 years — on the full $10,000, that is about $83 per month.

Because you repay it monthly, there is no forgiveness period and no balloon payment at sale — you simply pay off whatever remains. This option makes sense when you need the maximum help to cover both down payment and closing costs on a higher-priced home.

On a $100,000+ purchase, 10% can cover the entire FHA down payment and most closing costs, leaving you with minimal cash to close.

• 10% of purchase price, up to $10,000
• 0% interest, repaid monthly over 10 years
• About $83/month on the maximum amount
• Largest IHDA assistance amount
• No balloon payment — pay remaining balance at sale
• Minimum 640 credit score

IHDA Income and Purchase Price Limits 2026

IHDA sets household income limits and purchase price limits that vary by county. Here are the approximate 2026 limits for major Illinois counties — verify current figures at IHDA.org.

• Income limits based on total household income
• Chicago metro counties share the highest limits
• Purchase price limits apply to total price, not loan amount
• Targeted areas have higher limits and no first-time buyer requirement
• Verify current limits at IHDA.org before applying

IHDA Eligibility Requirements

IHDA programs are open to first-time buyers statewide and repeat buyers in targeted areas. First-time buyer means no ownership interest in a primary residence in the past 3 years.

Credit score: minimum 640 for all IHDAccess programs. DTI: maximum 45% for conventional, up to 50% for FHA with automated approval. See our DTI ratio guide for strategies to improve your ratio.

Occupancy: primary residence only. Homebuyer education: required for all borrowers — IHDA offers free online and in-person courses. Contribution: you must contribute at least $1,000 or 1% of the purchase price (whichever is greater) from your own funds.

• First-time buyer (no ownership in past 3 years) — waived in targeted areas
• Credit score: 640+ for all IHDAccess programs
• DTI: 45% conventional, up to 50% FHA
• Minimum borrower contribution: $1,000 or 1% of price
• Primary residence only
• Complete IHDA-approved homebuyer education
• Must use an IHDA-approved lender

How to Apply for IHDA Programs

IHDA programs are accessed through approved lenders — you cannot apply directly to IHDA.

Step 1: Find an IHDA-approved lender at IHDA.org. Step 2: Get pre-approved — the lender verifies credit, income, and program eligibility. Step 3: Complete homebuyer education. Step 4: Find a home within the purchase price limit. Step 5: Close — IHDA funds the assistance at settlement.

• Step 1: Find an IHDA-approved lender at IHDA.org
• Step 2: Get pre-approved and confirm which Access option fits
• Step 3: Complete required homebuyer education
• Step 4: Shop within county purchase price limits
• Step 5: Close — DPA funds delivered at settlement
• Tip: Compare 2-3 IHDA lenders — rates and overlays vary

Local Illinois DPA Programs

Several Illinois cities and counties offer additional assistance that can stack with IHDA.

• Chicago's city program is among the most generous in the Midwest
• Local programs often have lower income limits than IHDA
• Some local programs can combine with IHDAccess — ask your lender
• Check your city or county housing department for current funding