Down Payment Assistance

What is Down Payment Assistance?

Down Payment Assistance is a forgivable loan for homebuyers in Lake County, Illinois.

• Community Partners for Affordable Housing (CPAH), the HUD-certified housing counseling agency serving Lake County, Illinois, administers the Lake County Down Payment Assistance Program. Funded primarily through HUD HOME funds via Lake County Community Development. Provides up to $13,999 as a 0% interest forgivable 5-year second mortgage to first-time (3-year non-ownership) homebuyers purchasing 1-unit primary residences in Lake County. Loan forgives 1/60th per month; fully forgiven after 5 years.
• Up to $13,999 in down payment, closing-cost, and/or interest-rate-buydown assistance for qualified Lake County, Illinois homebuyers. Structured as a 0% interest forgivable second mortgage with NO monthly payments. The loan is forgiven on a 1/60th-per-month basis - if the borrower remains in the home as primary residence for 5 years (60 months), the entire loan is fully forgiven. Sale, refinance, or non-occupancy before the 5-year term triggers a prorated payback of the unforgiven balance.
• Funding comes from Federal, HOME, Local, and Nonprofit.

How much assistance does it provide?

Down Payment Assistance offers up to $13,999 in assistance.

• Buyer contribution: Borrower must contribute $1,000 or 1% of purchase price (whichever is greater) of own funds.
• 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?

Down Payment Assistance is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Forgiven 1/60th monthly over 5 years and prorated unforgiven balance due if home is sold, refinanced with cash-out, transferred, or no longer borrower's primary residence before the 5-year term ends.
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Down Payment Assistance is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Down Payment Assistance limits household income to $116,500.

• 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?

Down Payment Assistance caps the purchase price at $304,950.

• Eligible property types include 1-unit single-family home (detached, condo, townhouse where allowed).
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

Down Payment Assistance serves buyers purchasing in Lake County, Illinois.

How do you apply?

Applications for Down Payment Assistance go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through CPAH HUD-approved in-person homebuyer education class plus one-on-one housing counseling (both required as conditions of DAP funding)..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Application directly with CPAH after completion of homebuyer education and one-on-one counseling; subject to annual Lake County HOME/CDBG allocation., and are subject to availability.

3. 3

   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.