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Homeownership is a dream for most Americans, regardless of their income level. That?s why HOME offers down payment, closing cost and rehabilitation assistance to low-income homebuyers who make the purchased home their principal residence and rehabilitate it according to IHDA and HUD standards. Before receiving HOME assistance, prospective homebuyers must take part in homeownership counseling to ensure they understand budgeting and personal financial management, home mainte?nance, the mortgage loan process, legal documents and obligations associated with buying a home, and ?work-out? options they have with mortgage lenders in case financial problems arise.
SPONSORING AGENCIES
Local governments, non-profit organ?izations and C ommunity H ousing D evelopment O rganizations (CHDO s ? more information is in the ?Community Housing Development Organizations? section) may all take part in homebuyer assistance and rehabilitation activities. For-profit groups are not eligible.
Homeowners should apply for HOME assistance through sponsoring agencies funded by IHDA, not directly through the Authority or via the Single Family Program Department.
ELIGIBLE PROPERTIES
Houses selected by sponsoring agencies may be one-unit properties, condomini?ums or manufactured housing (mobile homes are ineligible). They may be val?ued at no more than HUD?s area limits, and in the case of acquisition and reha?bilitation, must be free from any health or safety defect before occupancy.
RESALE PROVISIONS
Assistance to homebuyers is provided in the form of deferred, forgivable loans at 0 percent interest. The use of HOME funds carries certain restrictions on the use of the purchased property, as well as upon any proceeds realized from the sale of the home if the sale occurs with?in certain time frames. If the homeown?er moves out or sells the home before this time period has expired, all or a por?tion of the HOME funds must be repaid by the homeowner.
For more information, contact HOME at (312) 836-5200.
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