Chicago First Time Home Buyer Programs
First time home buyer programs, both FHA and conventional, have become more attractive in the past few months as real estate conditions in the Chicago area have improved. Beyond just the standard program options, there is a very underutilized set of programs from the Illinois Housing Development Authority (IHDA) that should be considered by some first time home buyers.
The Illinois Home Start program is a great example of these options available to first time home buyers. This loan is a 30 Year Fixed at 4.75%. There is a down payment assistance option that trades a slightly higher rate for up to $6,000 in assistance. Using an FHA vs Conventional calculator and also comparing some of the state-sponsored programs can be a winning combination.
If you meet the Home Start requirements–notably the 640 FICO, income restrictions, and price restrictions, it can be a great program. The rate is fixed at a very low rate and, if the down payment assistance is critical, this is one of the few programs where you’ll still be able to get in with less than 3.5% down. The conventional loans tend to be the best option for people with over a 740 FICO and at least 5% down payment (10% on condos). The FHA loans tend to be very good when the FICO scores get lower or when the down payment needs to be slightly smaller.
It shouldn’t take more than a few extra moments to have your loan officer compare these options side by side for you. The difference can be thousands of dollars in just the first few years. In spite of all the negative news about the availability of loan programs, they’re actually better than what you would think.
This entry was posted on Thursday, January 28th, 2010 at 4:32 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.