15 Illinois First-Time Home Buyer Grants

If you want to buy a home in Illinois but need financial help to cover the down payment and closing costs, a first-time home buyer grant might provide the boost you need. Agencies and local governments scattered across Illinois offer financial assistance for home buyers.

What is a first-time home buyer grant?

A grant is a gift of money to make it easier to pay the thousands of dollars needed for a down payment and loan closing costs. Consequently, the financial assistance helps more people become homeowners. Some gifts never have to be repaid, while others are forgivable loans that are repaid when you refinance or sell the home.

Each program has its own eligibility terms and conditions. Many require you to:

• Occupy the home as a primary residence.

• Have a low to moderate income.

• Buy within purchase price limits.

• Put up your own money, often $1,000 or 1% of the home's price.

• Buy in a specific geographic location.

• Take home buyer classes or participate in housing counseling.

Here's NerdWallet's guide to help you find first-time home buyer grants and other assistance in Illinois.

» MORE: First-time home buyer programs in Illinois

First-time home buyer grants available across Illinois

The first three programs on this list are offered by the Illinois Housing Development Authority, or IHDA. The last is administered by the Federal Home Loan Bank of Chicago, which operates statewide. With the exception of 1stHomeIllinois, all are open to repeat as well as first-time buyers.

1. IHDAccess Forgivable

This program gives 4% of the home’s purchase price, capped at $6,000, for down payment and closing costs. The assistance isn't repaid if you keep the loan for at least 10 years.

2. IHDAccess Deferred

Home buyers take out an interest-free loan of 5% of the purchase price, up to $7,500, to help with a down payment and closing costs. The loan must be repaid when the buyer sells the home, refinances the mortgage or finishes making payments.

3. 1stHomeIllinois

This state program offers a $7,500 grant toward a down payment and closing costs on a property in Cook, Marion, St. Clair and Winnebago counties. As the name implies, 1stHomeIllinois is available only to first-time home buyers, defined as anyone who has not owned a home in the past three years. The program exempts veterans and applicants buying a property in a targeted area from the first-time requirement.

4. Downpayment Plus and Downpayment Plus Advantage

These programs, administered by the Federal Home Loan Bank of Chicago, offer up to $6,000 in down payment and closing-cost assistance. Grants are forgiven over a five-year period. Buyers must use a lender that's a member of FHLB Chicago or, in the case of the Advantage program, from a nonprofit organization. Borrowers must complete a home buyer education course as well as counseling. Buyers using the program must contribute at least $1,000 to the home purchase.