The Whole Illinois Eligibility Test, In Order
Program and regulatory figures verified September 25, 2026. Details change; confirm your scenario with us.
Six tests, and they are not weighted equally. Most Illinois files that fail do so on the third one, which has nothing to do with money.
One: income, against the right ladder
IHDA tests total household income against a limit that depends on your county, your program and, for IHDAccess Home, your household size. It is measured against the limit in effect at the time of loan closing rather than at application, which matters on a long escrow.
Household income is the total income of any person expected to live in the home and be liable, or secondarily liable, on the note. IHDA's own income calculator is required and must be completed, signed and dated for every file, and is published in the IHDA Document Library. All four ladders, by county.
Two: purchase price, which rarely binds
$666,354 for a non-targeted one-unit, identical in every Illinois county. Since Chicago's typical value is $357,265, this test passes quietly almost everywhere. The price caps.
Three: household composition, where files actually fail
All borrowers occupy within 60 days of close. No non-occupant co-borrowers, regardless of loan type or program. One IHDA loan at a time. For first-time-buyer programs, the borrower and any non-borrowing spouse must both clear the three-year ownership test unless Exempt.
This is the test that ends applications people expected to pass, because the usual remedy makes it worse rather than better. Why a co-borrower cannot help.
Four: credit and debt ratios
| Loan type | FICO | Maximum DTI |
|---|---|---|
| Conventional, FNMA or FHLMC | 640 and above | 50.00% |
| FHA, VA, USDA | 680 and above | 50.00% |
| FHA, VA, USDA | 640 to 679 | 45.00% |
That third row is a real constraint on government files. Credit and DTI in full.
Five: homebuyer education, for everyone
Every borrower takes pre-purchase homeownership education or counseling before closing, and the guide states plainly that this includes non-first-time homebuyers. Where DTI lands between 45.01% and 50.00%, the course must be Finally Home! specifically. Education rules.
Six: the property itself
One or two units, in Illinois, designed for residential use. A full appraisal is required on every loan and Property Inspection Waivers are not allowed. No manufactured homes for any loan type, nothing above two units, and nothing over 5 acres. The property standards.
Where this lands
If you clear all six, the remaining question is which program fits, and that is mostly an income-limit question rather than a preference. Compare the four or send us the scenario and our team will run it against the current tables.
Frequently asked questions
What are the IHDA eligibility requirements in Illinois?
Six tests. Household income under the applicable county and program limit measured at closing; purchase price under $666,354 for a non-targeted one-unit; household composition rules including occupancy within 60 days and no non-occupant co-borrowers; a minimum 640 credit score with DTI capped at 50.00% or 45.00% depending on score and loan type; pre-purchase homebuyer education for every borrower; and a one to two unit Illinois property meeting IHDA's standards.
When is my income tested for IHDA, at application or at closing?
At closing. The guide states that the borrower must have a total household income that does not exceed the applicable limit in effect at the time of loan closing. On a long escrow or a new-construction purchase, a limit change or an income change between application and closing can affect eligibility. IHDA's income calculator is required on every file and must be completed, signed and dated.
What credit score do you need for Illinois down payment assistance?
640 is the floor across the loan types IHDA publishes limits for. On conventional loans through Fannie Mae or Freddie Mac, a score of 640 or above allows a maximum back-end DTI of 50.00%. On FHA, VA and USDA loans, a score of 680 or above allows 50.00% while a score of 640 to 679 caps the maximum DTI at 45.00%.
How do I apply for Illinois down payment assistance?
You apply through a lender rather than to IHDA directly. The lender pre-screens you against the first-time-buyer, income, credit and purchase price tests, then reserves the loan in IHDA's system, which is when the rate is locked. Your homebuyer education certificate has to be uploaded before that lock can be confirmed, so taking the course early matters. From there the lender processes the file, orders the full appraisal that IHDA always requires, and closes. IHDA's own disclaimer applies throughout: funding is not guaranteed until a complete reservation is placed.
What if my credit score is not high enough for IHDA?
640 is the floor across the loan types IHDA publishes. Below that, the honest answer is that IHDA assistance is not available yet, and the useful question becomes which specific factor is holding the score down and how long it takes to move. Between 640 and 679 you do qualify, but on FHA, VA and USDA loans your maximum debt-to-income is capped at 45.00% instead of 50.00%, so a thin score costs you borrowing room rather than eligibility. Conventional loans through Fannie Mae or Freddie Mac allow the full 50.00% from 640.
Do repeat buyers have to take homebuyer education for IHDA?
Yes. The guide states that all borrowers are required to participate in pre-purchase homeownership education or counseling prior to close, and adds explicitly that this includes non-first-time homebuyers. The course must meet standards defined by HUD or the National Industry Standards for Homeownership Education and Counseling, and the certificate must be uploaded before the rate lock can be confirmed.
Can I have two IHDA loans at once?
No. The guide states that the borrower can only have one IHDA Mortgage loan at the time of closing. Separately, if a borrower will own more than one property at the time of closing, the subject property must be the owner-occupied principal residence, and all agency and master servicer guidelines and overlays still apply.
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.