The Illinois Down Payment Assistance Guide
Program and regulatory figures verified September 25, 2026. Details change; confirm your scenario with us.
If you read one page on Illinois assistance, make it this one. It is the whole picture in order, with links into the detail where you need it.
Step one: which program can you actually use
IHDA runs four. Three of them have no first-time buyer requirement and share one income limit. The fourth pays the most and is fenced off behind a tighter income test.
| Program | Pays | Cap | Cost later | First-time only |
|---|---|---|---|---|
| IHDAccess Home | 6% | $15,000 | Deferred, due on sale | Yes |
| IHDAccess Repayable | 10% | $10,000 | Monthly, zero interest | No |
| IHDAccess Deferred | 5% | $7,500 | Deferred, due on sale | No |
| IHDAccess Forgivable | 4% | $6,000 | Forgiven over 10 years | No |
Full comparison. IHDAccess Home in detail.
Step two: find your income ladder
General programs use one limit regardless of household size: $170,100 in Cook, DuPage, Kane, Lake, McHenry and Will, $190,120 in Kendall, $157,640 across most of the state. IHDAccess Home uses lower limits that vary by household size, $121,500 for one or two people in Cook.
A targeted address raises the AccessHome ladder and waives the first-time test. All four ladders. Targeted areas.
Step three: check the household rules
This is where files fail. No non-occupant co-borrowers, regardless of loan type or program. Everyone on the note who lives there has their income counted. One IHDA loan at a time. For first-time programs, a non-borrowing spouse's ownership history counts too.
Why adding an earner backfires. The three-year test.
Step four: credit and ratios
640 floor. Back-end DTI to 50.00% with automated approval on conventional from 640, and on FHA, VA and USDA from 680. Between 640 and 679 on those government types the cap is 45.00%. The matrix.
Step five: plan your own money
The greater of 1% of the purchase price or $1,000, from your funds. Earnest money and a borrower-paid appraisal, inspection or prepaid insurance count toward it. Tax proration does not. Cash back at closing is capped at $250 above your minimum. The detail.
Step six: the property and the paperwork
One to two units in Illinois, full appraisal always, no waivers, no manufactured homes. Education before closing for everyone, and the certificate has to be uploaded before the loan can be locked. Property rules. Education.
The two timing traps
First, income is tested against the limit in effect at the time of loan closing, not at application. On a long escrow that matters.
Second, the education certificate gates the rate lock rather than the closing package. Take the course early.
Where you are buying
Cook County · DuPage, Lake, Will, Kane and McHenry · Kendall · Downstate Illinois
IHDA's own disclaimer applies throughout: funding and availability are subject to change and are not guaranteed until a complete reservation is placed. Primary sources: the IHDA program directory, the IHDA income and purchase price limits, and the origination guide in the IHDA Document Library.
Frequently asked questions
How does down payment assistance work in Illinois?
The Illinois Housing Development Authority pairs a fixed-rate first mortgage with one of four assistance programs, delivered as a second mortgage. IHDAccess Home pays 6% to $15,000 for first-time buyers, IHDAccess Repayable 10% to $10,000 with monthly repayment, IHDAccess Deferred 5% to $7,500, and IHDAccess Forgivable 4% to $6,000 forgiven over 10 years. You receive the lesser of the percentage and the cap, and you still contribute the greater of 1% of the purchase price or $1,000.
What disqualifies people from Illinois down payment assistance most often?
Household composition rather than the limits. IHDA does not permit non-occupant co-borrowers regardless of loan type or program, and counts the income of anyone who lives in the home and is liable on the note, so adding an earner cannot create headroom. For first-time-buyer programs a non-borrowing spouse's ownership history also counts even if that spouse will not live in the property.
Do I need to be a first-time buyer for Illinois DPA?
Only for IHDAccess Home. The other three programs carry no first-time requirement. Even for IHDAccess Home, buyers are Exempt from the three-year ownership test if they are a qualified veteran or if the property is located in a targeted area, and a targeted address also raises the program's income limit.
How much money do I need to bring to an Illinois DPA closing?
At minimum, the greater of 1% of the purchase price or $1,000, from your own funds or properly sourced gift funds where the automated underwriting system allows. On a $250,000 purchase that is $2,500. Earnest money already paid, and a borrower-paid appraisal, inspection or prepaid insurance, all count toward it. Tax proration does not count.
When are Illinois income limits applied, and do they change?
Income is tested against the limit in effect at the time of loan closing rather than at application. The current limits took effect 7-1-2026. IHDA notes that some limits were determined by an IRS Private Letter Ruling issued to the Authority, and its standard disclaimer states that program funding and availability are subject to change at any time and are not guaranteed until a complete reservation is placed.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not legal or tax advice. IHDA program terms, income limits and purchase price limits are set by the Illinois Housing Development Authority and change; figures here carry the date we verified them and IHDA's own disclaimer applies, that funding and availability are subject to change and are not guaranteed until a complete reservation is placed. Loans are subject to borrower and property qualification.