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Choose Aurora Homebuyer Assistance Forgivable Loan Program

Aurora, Illinois

Last verified
See what you qualify forOfficial program site →
Assistance

$3,000–$5,000

The maximum the program publishes — not an offer

Income limit

80% AMI

Of area median income; varies by county and household size

Price cap

$342,000

Highest purchase price the program allows

Repayment

Forgivable

Forgiven after 3 years

What is Choose Aurora Homebuyer Assistance Forgivable Loan Program?

Choose Aurora Homebuyer Assistance Forgivable Loan Program is a forgivable loan for homebuyers in Aurora, Illinois.

  • The Choose Aurora Homebuyer Assistance Forgivable Loan Program, administered by the City of Aurora Community Development Division, provides up to $5,000 of down payment and closing-cost assistance to income-eligible first-time homebuyers purchasing single-family homes within Aurora city limits. Funded through CDBG/HOME, the assistance is structured as a 3-year, 0%-interest, no-payment, fully-forgivable second mortgage that is satisfied after 3 years of continuous owner-occupancy.
  • Up to $5,000 in down payment and closing-cost assistance, structured as a 3-year, 0%-interest, no-payment, fully-forgivable second-mortgage loan for income-eligible first-time homebuyers purchasing single-family homes within the City of Aurora. Awarded first-come, first-served subject to fund availability.
  • Funding comes from Federal HOME, Federal CDBG, and Local Government.

How much assistance does it provide?

Choose Aurora Homebuyer Assistance Forgivable Loan Program offers between $3,000 and $5,000 in assistance.

  • Buyer contribution: Homebuyers must pay a minimum of $1,000 of their own funds toward the purchase.
  • The program can be combined with other assistance, subject to the rules of each.
  • Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Choose Aurora Homebuyer Assistance Forgivable Loan Program is forgiven after 3 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by Loan fully forgiven after 3 years of continuous owner-occupancy. If property is sold, transferred, leased, rented, abandoned, or ceases to be principal residence within 3 years, borrower may be required to repay a portion of the original loan amount.
  • The assistance is recorded in 2 position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Choose Aurora Homebuyer Assistance Forgivable Loan Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: First-time homebuyer = no homeownership in prior 3 years; loss-of-prior-home exception per HUD definition.
  • The home is occupied as a primary residence
  • On credit: No published Aurora-specific minimum; first-mortgage product credit-score minimums apply
  • Residency: Property must be located within the corporate limits of the City of Aurora, IL, and serve as borrower's primary residence.
  • Citizenship or immigration status: U.S. citizen or eligible non-citizen per first-mortgage product rules
  • Applicant(s) must be a first-time homebuyer or have not owned a home for at least 3 years (or lost prior home due to qualifying circumstances). Household income must be at or below 80% HUD AMI for Chicago-Naperville-Elgin HMFA (Kane/DuPage/Will/Kendall county portion) - approximately $62,800 (1-person) to $118,450 (8-person) under 2025 HUD limits. Property must be a single-family home within Aurora city limits and serve as buyer's primary residence. Buyer must occupy property as principal residence for the 3-year forgiveness term; otherwise pro-rata repayment may be required. Pre-purchase HUD-approved homebuyer education required.

The program excludes

  • Manufactured homes
  • Purchases above the $342,000 price cap
  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

Choose Aurora Homebuyer Assistance Forgivable Loan Program limits household income to 80% of the area median income, which varies by county and household size.

  • Household income at or below 80% HUD AMI for the Chicago-Naperville-Elgin HMFA. 2025 approximate range: $62,800 (1-person) to $118,450 (8-person).
  • The limit applies to total household income, not only the borrower’s.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Choose Aurora Homebuyer Assistance Forgivable Loan Program caps the purchase price at $342,000.

  • Eligible property types include Single-family detached.
  • New construction is eligible.
  • Manufactured homes are not eligible.

Where does it apply?

Choose Aurora Homebuyer Assistance Forgivable Loan Program serves buyers purchasing in Aurora, Illinois.

How do you apply?

Applications for Choose Aurora Homebuyer Assistance Forgivable Loan Program go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Contact the administering agency to reserve funds

    Funds are reserved through Lender or buyer submits application via City of Aurora Community Development Division; awarded first-come, first-served subject to fund availability., and are subject to availability.

  2. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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