Illinois down payment assistance for repeat homebuyers 2025

What these programs do ?

They help with down payment and sometimes closing costs. Repeat homebuyers are people who owned a home before. Some programs treat them like first time buyers if enough time has passed since prior ownership.

State level programs to check
Illinois Housing Development Authority IHDA runs the main programs. Most IHDA help targets first time buyers or people who have not owned a home for a set number of years. IHDA offers down payment assistance that can be a forgivable loan if you live in the home for the required time. Amounts, income limits, and purchase price caps vary. You must use an IHDA approved lender and complete a homebuyer education course.

What to check for as a repeat buyer ?

1. Time since your last ownership and whether that meets program rules.
2. Household income limits based on area median income.
3. Purchase price limits in the county you plan to buy in.
4. Required homebuyer education or counseling.
5. Requirement that the home be your primary residence for a set period.
6. Use of an approved lender.
7. Which property types qualify such as single family homes or some condos.
8. How the assistance is delivered and whether it has forgiveness or recapture rules.

How to apply ?

1. Contact an IHDA approved lender and say you want down payment assistance.
2. Confirm you meet income, price, and ownership history rules.
3. Complete the required education or counseling.
4. Submit the mortgage and DPA paperwork through the lender.
5. Close and follow the residence requirements to keep the forgiveness if applicable.

Practical tips for 2025

Check IHDA and local municipal programs for updates. Local cities or counties sometimes offer help that state programs do not. Keep proof of prior ownership and income ready. Budget for closing costs and repairs because DPA may not cover everything. Ask the lender how the assistance affects your mortgage and what would trigger recapture.

Extra note

There are legislative proposals that could change options for people who have not owned in a long time. Policies can change during the year. Verify the current rules before you apply.