News Column

First-Time Home Buyers Reserve $500 Million in Mortgage Financing

July 7, 2014



CHICAGO, July 7 -- The Illinois Housing Development Authority issued the following news release:

As the state's affordable housing leader, the Illinois Housing Development Authority (IHDA) reports over 4,500 buyers have reserved over $500 million in mortgage financing, setting a new record in the agency's 30 years of mortgage lending.

Illinois's success comes at a time when experts are increasingly recognizing the important role of first time homebuyers in driving economic growth and many states are struggling to boost first-time homebuyer sales across both new and existing homes.

A healthy housing market is essential to the overall success of the economy and 2014 is the year the Illinois housing market is officially making a comeback. First-time homebuyers make a significant impact to the overall housing market as their purchases have a ripple effect on the Illinois economy and help create jobs across the state.

IHDA uses innovative ways to help first-time homebuyers, or anyone that has not owned a home in the past three years, by offering 30-year fixed rate loans, competitive interest rates and up to $10,000 in down payment assistance to reduce out-of-pocket expenses. Additionally, IHDA's mortgage tax credits can boost a homebuyer's annual deduction by as much as 40 percent.

"It's rewarding to see this kind of response to our mortgage programs knowing these funds are helping provide affordable options for buyers who want to own a home responsibly," IHDA Executive Director Mary R. Kenney said. "We want to give buyers the additional leverage they need in this tight market by providing products available only through the State of Illinois."

Leading the production surge is the Governor's Welcome Home Illinois program, which offers $7,500 in down-payment assistance with an interest rate currently as low as 3.75 percent for a secure, 30-year fixed rate mortgage. IHDA also offers special programs for Veterans or those who choose to buy a vacant property.

First-time homebuyers are the engine that drives the overall housing market and greater economy. Families moving into new homes invest in other items such as furnishings, appliances and home goods. In fact, according to the Illinois Association of Realtors, every home sold generates two jobs and $60,000 in ripple effects to the overall economy.

Summer marks peak buying season and IHDAs programs are tailored to working families, with borrower income limits for a family of three of $102,986 annually for Chicago, Aurora, Joliet, Naperville; $85,540 for Rockford, and $79,925 for Springfield and Peoria.

Potential buyers can visit WelcomeHomeIllinois.gov to find a local IHDA-approved lender, current interest rates; income limits and more information on IHDA's many homeownership programs.

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Source: Targeted News Service


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