First-time homebuyers in Illinois now have an opportunity to take advantage of current low-interest rates and decreasing home prices under an innovative new program offered by the Illinois Housing Development Authority (IHDA). The Illinois Home Start Loan Program allows hundreds of residents to achieve the dream of homeownership through a new 30-year fixed rate loan, and an advance loan on the federal tax credit created by the American Recovery and Reinvestment Act of 2009.

Home Start offers a 30-year fixed rate loan insured by the Federal Housing Administration for first-time homebuyers, and gives them the option to use a second loan for down payment assistance. The second loan provides families and individuals buying their first homes an advance loan on the $8,000 federal tax credit, which they can repay once they receive the credit.

Before IHDA's Home Start Advance Loan, families could only access this credit next year after filing their tax returns with the IRS. Only those homebuyers who qualify for an Illinois Home Start Loan can receive the Home Start Advance Loan. Illinois residents who qualify will receive a zero interest loan for up to 3.5 percent (or up to $6,000) of the home purchase price to put toward the down payment. Thanks to this limit, Illinois families will still reap the benefits of the $8,000 federal tax credit next year since there will be money remaining after the loan is repaid.

Homebuyers interested in applying for the Home Start Loan Program should contact an IHDA partner lender. For details, see www.ihda.org.

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