Buying your first home? Look here for a $6,000 loan

July 24, 2009

If you're out on the hunt for your first home, you might want to add checking out the Illinois Housing Development Authority to your list of to-dos. The Chicago Tribune reports the IHDA will offer interest-free loans up to $6,000 for down payments on homes. If you're a first-time buyer and go through the state's Home Start Loan Program, the IHDA will help you out with a zero-interest loan for up to 3.5 percent, or $6,000, of the purchase price as a down payment. That's if you set up a 30-year, fixed rate Federal Housing Administration-insured loan through one of the state's participating lenders. You have to pay $300 for the application fee and the loan must be repaid before June 30, 2010. After that, interest will start accruing. There are some restrictions. If you're looking to buy a home in Cook, DuPage, Kane, Lake, McHenry and Will counties, families of three or more can't make more than $86,135 and a single-family home must cost less than $349,020. If you're a veteran or active-duty military personnel, you don't have to be a first-time buyer to quality. Get more info and a list of lenders at www.ihda.org.