The City of Chicago and the State of Illinois both have a number of programs designed to help people buy homes. In some cases they will lend you money to use as a down payment and in some cases the City of Chicago will give you money to use as a down payment.

One of the most generous programs is City of Chicago’s Home Buyer Assistance Program.  They will give you up to 7% of the loan amount, up to $17,500, to use as the down payment and to cover closing costs. There are some credit score requirements and there is a maximum income you can have to qualify. The income cutoff is a surprisingly high, $131,775. Home buyers are required to put up a $1000.

In theory you can have a low credit score and very little cash and the city will help you buy a home. In reality it is not that simple. You still have to qualify for a loan. The city may be happy with a $1000 down payment and a so-so credit score but that does not mean a mortgage company will be. The biggest problem will be with the seller. Most sellers want earnest money of more than $1000. The city will pay a down payment but not until the closing. Very few sellers will be willing to take their home off the market with only $1000 guaranteeing the deal. I have done deals with as little as 2.5% down and 5% will work in some cases but owners usually want 10% or more.  

https://www.cityofchicago.org/content/dam/city/depts/mayor/general/HomeBuyerAssistanceProgramFlyer.pdf
 


Comments

04/19/2017 1:59pm

The Chicago is famous builders in all over the city because it provide the good package for all type of people and his working of speed is good. The author of this page always gives the good topic for readers.

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06/21/2017 6:38pm

I think they really want more people to move to Chicago. They make programs to make this move easier for some. Why are they doing this? Do they need more workforce? Why the need for an increase in population? I am not against it. I am just wondering why it's not like this in other places. I am a happy resident. It's a good choice I must say.

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06/05/2017 5:30am

I will check this file right now. I am very interested about this program.

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