Down payment aid for first-time home buyers

Down payment help is available for eligible first-time home buyers and veterans under a new state program.

Borrowers who qualify for the Illinois Housing Development Authority's 30-year, fixed-rate Home Start mortgage can apply for a second, zero-interest forgivable loan for 3 percent or up to a maximum of $6,000 of the home purchase price to put toward the down payment under the program. The second loan is forgivable over 10 years if the home buyer remains in the house.

To qualify, applicants must have a minimum credit score of 640 and be able to contribute 1 percent or $1,000 of the purchase price from their own savings. Homeownership counseling also is required through a counselor certified by the U.S Housing and Urban Development Department.

The new program expects to aid about 2,000 home buyers with their down payments over the next year under the program.

Veterans don't have to be first-time home buyers to qualify.

For more information, visit ihda.org or call (877) 456-2656.

Francine Knowles