Illinois Aims to Help First Time Homebuyers

If you are first time homebuyer, this is definitely your year . If you buy a home, you can get a tax credit worth up to $8,000. Additionally, you can use that tax credit now to put it toward a down payment . But if you are a first time homebuyer in Illinois, things are about to get even sweeter: The state is prepared to offer an interest-free loan of up to $6,000 to be used as down payment .

The program is run through the Home Start Loan Program. Interested parties can get a list of approved mortgage lenders, and then arrange for a 30-year fixed FHA loan in order to take advantage of this special home mortgage loan. The loan is for 3.5% of the purchase price, or $6,000 — whichever is lower. There are some caveats, of course:

• There is a $300 application fee.
• Buyers have until June 30 of next year to repay the loan, or interest will start accruing.
• Income requirements are involved.
• The home must not cost more than $349,020.
• You must be a first-time homebuyer (unless you are a veteran or active-duty military).

With all of the incentives, ranging from government encouragement to low mortgage rates and home prices, now is a good time to buy a home. However, it is important that you determine whether you can really afford a home before you take the plunge.

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