IHDA Programs Illinois 2026: Complete Down Payment Assistance Guide

What Is IHDA?

The Illinois Housing Development Authority (IHDA) is a self-supporting state agency created in 1967 to finance the creation and preservation of affordable housing across Illinois. IHDA's primary homebuyer-facing product is its IHDAccess mortgage suite — a family of loan programs that pair competitive 30-year fixed-rate mortgages with various forms of down payment and closing cost assistance.

IHDA programs are available through a statewide network of approved lenders — not through every mortgage broker or bank. All IHDA programs share certain common features: 30-year fixed-rate mortgages, minimum credit score requirements, household income and purchase price limits by county, and homebuyer education requirements for most borrowers. The programs differ primarily in the structure and amount of down payment assistance provided.

For complete, up-to-date program details and to find an approved lender, visit the official IHDA sites: ihdamortgage.org and ihda.org.

IHDAccess Home — New in 2026 (Up to $15,000)

The newest addition to IHDA's lineup, launched March 2026 by Governor JB Pritzker, IHDAccess Home (also called "Access Home") is IHDA's most generous single down payment assistance program to date.

IHDAccess Home is available through IHDA's 160+ approved lenders statewide. Income limits vary by county and household size. In Cook County (Chicago), the 2026 income limit is approximately $137,885 depending on household size. Other major county limits include approximately $126,615 in Winnebago County and $131,905 in Sangamon County. Always verify current limits directly with IHDA, as they are updated periodically.

Source: Governor Pritzker's office announcement, March 2026.

IHDAccess Repayable — Up to $10,000

IHDAccess Repayable provides the highest assistance amount among the standard IHDAccess programs.

• Amount: 10% of the purchase price, maximum $10,000
• Structure: 0% interest second mortgage, repaid in monthly installments over 10 years
• Repayment: Yes — you must make monthly payments on this second mortgage alongside your first mortgage. On a $10,000 second, that's approximately $83/month for 10 years.
• Eligibility: Available to first-time and repeat homebuyers statewide
• Loan types: FHA, VA, USDA, Fannie Mae HFA Preferred, Freddie Mac HFA Advantage
• Credit requirement: 640 minimum
• Homebuyer education: Required

Because IHDAccess Repayable requires monthly payments, it is the most transparent of the IHDA assistance options — there is no deferred balloon payment at sale. However, it does add to your monthly obligations. Borrowers who want the higher amount but dislike deferred payoff structures will find this program appealing.

IHDAccess Deferred — Up to $7,500

IHDAccess Deferred provides a mid-range assistance amount with no monthly payments required on the second mortgage.

• Amount: 5% of the purchase price, maximum $7,500
• Structure: 0% interest second mortgage, deferred for the life of the first mortgage
• Repayment: Due in full when you sell the home, refinance, or pay off the first mortgage. No monthly payments.
• Eligibility: Available to first-time and repeat homebuyers statewide
• Loan types: FHA, VA, USDA, Fannie Mae HFA Preferred, Freddie Mac HFA Advantage
• Credit requirement: 640 minimum
• Homebuyer education: Required

IHDAccess Deferred is a popular choice for buyers who want meaningful assistance without adding to their monthly payment load. The $7,500 maximum can cover a substantial portion of a down payment on a moderately priced Illinois home.

IHDAccess Forgivable — Up to $6,000

IHDAccess Forgivable is the only IHDA program where the assistance does not need to be repaid, as long as you stay in the home.

• Amount: 4% of the purchase price, maximum $6,000
• Structure: Second mortgage forgiven monthly over 10 years (1/120th forgiven each month)
• Repayment: Any unforgiven balance is due if you sell or refinance before 10 years. After 10 years, the full amount is forgiven.
• Eligibility: Available to first-time and repeat homebuyers statewide
• Loan types: FHA, VA, USDA, Fannie Mae HFA Preferred, Freddie Mac HFA Advantage
• Credit requirement: 640 minimum
• Homebuyer education: Required

The forgivable structure makes this program highly attractive for buyers who plan to stay in their home long-term. After 10 years, it becomes a true grant. If you sell in year 5, roughly half the balance ($3,000) would need to be repaid — still a net benefit compared to never having received the assistance.

SmartBuy: Illinois Student Loan Payoff Program (Up to $40,000)

IHDA's SmartBuy program was unique nationally — a state-backed mortgage product that simultaneously helped buyers purchase a home and pay off outstanding student loan debt. It was administered in partnership with the Illinois Student Assistance Commission (ISAC). This program permanently closed on February 24, 2025.

• Student loan payoff amount: 15% of the purchase price, up to $40,000 — paid directly to the student loan servicer at closing to fully pay off one student loan
• Structure: Forgivable second mortgage at 0% interest, forgiven at 1/36th per month over 3 years (historical terms — program is now closed)
• Eligibility: Must have outstanding student loan balance that can be fully retired with the SmartBuy assistance amount; cannot have a partial payoff
• First-time buyer: Required (not owned a home in last 3 years)
• Credit requirement: 640 minimum

SmartBuy was particularly valuable for Illinois college graduates with student loan debt who had been delaying homeownership due to their debt-to-income ratio. This program is no longer available. Contact Carlos to discuss current down payment assistance alternatives.

1st Home Illinois: $5,000 for Targeted Counties

1st Home Illinois is a targeted program designed to encourage homeownership in areas that have historically experienced lower rates of owner-occupancy. Unlike other IHDA programs, 1st Home Illinois is not available statewide — it is restricted to purchases in designated counties.

• Amount: $5,000 grant (not a loan — no repayment required)
• Eligible counties: Cook, Marion, and targeted areas in other Illinois counties. Check the IHDA county lookup tool for current eligibility.
• Eligibility: Must be a first-time buyer purchasing in an eligible county
• Loan types: FHA and USDA only (conventional not available for this program)
• Credit requirement: 640 minimum

Because 1st Home Illinois provides a true grant rather than a deferred or repayable loan, it has the simplest repayment structure (there is none). However, its geographic restrictions and FHA/USDA-only requirement make it less broadly applicable than the IHDAccess suite.

Side-by-Side IHDA Program Comparison

Program	Max DPA	Structure	Repayment	First-Time Only?
IHDAccess Home (2026)	$15,000 (6%)	Deferred, 0% interest	At sale/refi or 30 yrs	Yes (veterans exempt)
IHDAccess Repayable	$10,000 (10%)	0% second mortgage	~$83/mo over 10 years	No — all buyers
IHDAccess Deferred	$7,500 (5%)	Deferred, 0% interest	At sale/refi/payoff	No — all buyers
IHDAccess Forgivable	$6,000 (4%)	Forgiven over 10 years	Unforgiven balance if sold early	No — all buyers
SmartBuy	$40,000 (15%)	Forgiven at 1/36th/mo over 3 years (historical — program closed Feb 2025)	N/A — program closed	Yes
1st Home Illinois	$5,000 (grant)	Grant — no repayment	None	Yes (targeted counties)

Universal IHDA Requirements (All Programs)

All IHDA mortgage programs share the following minimum eligibility requirements:

• Minimum credit score: 640 (middle score of all borrowers from all three bureaus)
• Income limits: Household income must be at or below IHDA's county-specific limits. Limits vary by county and household size. Check current limits at ihdamortgage.org/limits.
• Purchase price limits: The home price must be at or below IHDA's county purchase price limits. Limits also vary by county and targeted-area status.
• Primary residence only: The purchased home must be your primary residence. Investment properties and vacation homes are ineligible.
• Homebuyer education: Completion of a HUD-approved homebuyer education course is required for most IHDA programs. Veterans may be exempt for certain programs. Online courses are available and typically take 6–8 hours.
• IHDA-approved lender: You must work with a lender on IHDA's approved network. Not all mortgage companies are approved. Find approved lenders at ihdamortgage.org.
• Borrower contribution: Most programs require borrowers to contribute at least $1,000 or 1% of the purchase price (whichever is greater) from their own funds. This can include earnest money, appraisal fees, or other allowable contributions.
• Debt-to-income ratio: Maximum DTI is generally 45% (with a 640 credit score) or up to 50% for borrowers with a 680+ credit score, depending on AUS findings.

How to Apply for an IHDA Loan

Because Carlos is not an IHDA-approved lender, this section provides guidance on how to access IHDA programs through the proper channels:

1. Find an IHDA-approved lender: Use the lender search tool at ihdamortgage.org to find participating lenders in your area. There are 160+ approved lenders statewide.
2. Check income and purchase price limits: Use IHDA's online limits calculator at ihdamortgage.org/limits to confirm you are within the limits for your county.
3. Complete homebuyer education: Enroll in a HUD-approved online or in-person homebuyer education course. Your IHDA-approved lender can recommend approved providers.
4. Apply through the approved lender: The lender handles the full application, including reserving your IHDA funds with the Authority. Funds are allocated on a first-come, first-served basis, so applying promptly when a program has available funding is important.
5. Provide standard documentation: Tax returns, W-2s, pay stubs, bank statements, and government-issued ID — the standard mortgage documentation package applies.

Other Down Payment Assistance Options: What Carlos Can Offer

As an independent mortgage broker, Carlos works with multiple wholesale lenders and has access to national DPA platforms that include:

• National DPA second mortgage programs: Down payment assistance programs available through Fannie Mae and Freddie Mac's Community Seconds framework and other national providers, often with competitive income limits and fewer geographic restrictions than state programs
• Forgivable grant programs from wholesale lenders: Several major wholesale mortgage lenders offer proprietary grant and DPA programs that provide 1%–3.5% in forgivable assistance not tied to any state agency
• FHA and conventional DPA overlays: Programs that layer assistance on top of FHA, conventional, VA, and USDA loans, structured as gifts, grants, or deferred second mortgages
• FHLB (Federal Home Loan Bank) AHP grants: Federal Home Loan Bank's Affordable Housing Program grants, available through qualifying member lenders, providing up to $15,000+ for eligible borrowers

National programs often have fewer restrictions than IHDA — no mandatory approved-lender list, higher or no income limits in some cases, and broader geographic applicability. They can be especially useful for:

• Illinois buyers who earn too much to qualify for IHDA income limits
• Repeat buyers who don't meet IHDA's first-time buyer requirements
• Buyers who want to work with a broker who can shop multiple lenders for the best rate rather than being locked into IHDA's network pricing

Frequently Asked Questions