Illinois Governor's Office Announces Homebuyer Down-Payment Assistance Program

On August 3, Gov. Pat Quinn's administration announced a $200 million program that allows qualified first-time homebuyers to put as little as $1,000 down when they buy a house.

The SmartMove program, which also is available to veterans who aren’t first-time homebuyers, allows participants to receive up to $6,000 in down-payment assistance from the Illinois Housing Development Authority, a self-supporting state agency whose job it is to create and preserve affordable housing across Illinois.

Interest rates from IHDA range from 4.5 percent to 5.25 percent for a 30-year mortgage, said Tara Pavlik, director of originations and operations.

“For a lot of the loans out there, you do need to have 3.5 percent down that many borrowers can’t do, especially in the low to moderate range. This (program) is one that is truly counted as the borrowers’ own funds. So it really is the only one of its kind out there,” Pavlik said.

In Sangamon County, those in a household making $81,765 or less who are buying a home that costs $247,000 or less can qualify, Pavlik said. Buyers have to put 1 percent or $1,000 down, whichever is more.

“We do require the borrowers to put some skin in the game,” she said. “A typical buyer that we have doesn’t have the ability to save up for a down payment, so they’re spending generally more in rent than to just purchase a home.”

The down-payment assistance allows buyers to have money for other essentials.

“Even if they have saved enough to get the down payment, small things arise, you need a new stove, you need a new fridge. They have those reserves because they didn’t have to necessarily put it down that way,” Pavlik said. “

Nancy Sutzer, vice president at Marine Bank, a lender for the project, called the program “the best-kept secret in town.”

Asked how IHDA will ensure that buyers don’t get in over their heads as millions did prior to the 2008 economic collapse, Pavlik said, “We require that all borrowers go to home-ownership counseling to make sure they understand what it means to be a homeowner.”

Angela Page-Diop, a 39-year-old single mother of two boys, said the program helped her buy her first home. Page-Diop, a nurse who received $4,700 in assistance, looked for something affordable for more than a year.

“I’m originally from Chicago, and I decided to stay here in Springfield because it’s a better situation for my two boys, especially being a single mom. … I knew that I wanted to purchase a home, so I saved a little bit and it still wasn’t enough to buy the home I wanted to buy for my two boys,” Page-Diop said.

“It’s not a shed. It’s a lot of space — 2,700 square feet for them to roam around, have a basketball court and have friends over and my family to come spend time with us and share holidays and build on some memories that I want to have for my sons.”

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About the program

The Illinois Housing Development Authority will provide $200 million for the SmartMove program. That will provide financing for 1,300, including an estimated 220 in Springfield, agency officials said.

For more information on the program, e-mail loans@ihda.org, go to www.ihda.org or call 1-877-456-2656. Applicants must have a minimum credit score of between 620 and 660.

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