The painful memories of the housing bubble are quickly fading amidst the red-hot real estate market here in the Chicago area. However, the good news is not universal. Some homeowners live in sort of a limbo where they can just afford their mortgage payment, but they cannot possibly sell their home due to the fact that they owe more than the property is worth.
There may be hope for some of you. The Illinois Housing Development Authority (IHDA) has introduced a program for qualifying homeowners to receive up to $50,0o0 toward the balance due on their mortgage and refinance into a more affordable loan based on the market value of their home. The following eligibility requirements must be met:
- Current on your mortgage for at least 12 months
- Live in the home as your primary residence
- Credit qualify for a new IHDA mortgage through a participating lender
- Be within IHDA’s income and home price limits
- Credit score must be at or above 640
- 640 for Conventional, VA and USDA
- 660 for FHA
- Pre-assistance combined loan-to-value must be greater than 110%
- Post-assistance loan-to-value will be 90-97%
The income and home price limits for the Chicago area vary depending on the number of people in your household and whether your home is new construction, existing or multi-unit.
If you qualify, I would strongly encourage you to reach out to one of the participating lenders. Free money, after all!
If you have questions about this program, or any other real estate matter, as always, you can contact me at email@example.com or 773-632-8330. To see what my clients have to say about me, please visit me at avvo.com or on my Google + page.