Tuesday, June 07, 2011

 

Frist Time Buyer Programs in Illinois

IHDA or the Illinois Housing Development Authority has re-started one of its programs for assisting first-time home buyers – the MCC Tax Credit Program. Unfortunately their website has very little useful information. A lender I often work with (and highly recommend) Tom McGrath from Wintrust (TMcGrath@wintrustmortgage.com) said calling IHDA is not any better. You can contact Mr. McGrath directly if you want more information about qualifying for the loan program.

Here is what I have been able to find out: The program allows you to receive a tax credit of approximately 20% of the interest you pay on your mortgage each year for the 30-year life of the loan. The idea is that you might be able to borrow more money with this program that you can without. The tax credit amount will increase the amount of income you have for the loan process and allow you to buy a slightly more expensive property, or you can just enjoy the money saved and use it to improve your new home. The links below give a little more information on the loan program.

There are income limitations: $75,100 for a household of 1-2 people; if you are buying in a target area then your income can go up to $90,102. You might be surprised at what neighborhoods are considered target neighborhoods. I know parts of Humboldt Park qualify for example. If you want to find out more about target neighborhoods you will have to contact your lender or mine above. The purchase price for one unit is capped at $349,020 and for two units (yes that means a two-flat) is capped at $446,800 unless you are in a target neighborhood and then once again it is higher.

http://www.ihda.org/admin/Upload/Files//b9b13984-8b09-40d2-bf0f-b57dd053ba8f.pdf

http://www.ihda.org/admin/Upload/Files/lender/programs/mccprogramdescription.pdf

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