Habitat for Humanity Chicago Affordable Homeownership Program

What is Habitat for Humanity Chicago Affordable Homeownership Program?

Habitat for Humanity Chicago Affordable Homeownership Program is a first mortgage for homebuyers in Chicago, Illinois, administered by Habitat for Humanity Chicago.

• Habitat for Humanity Chicago provides a subsidized 0% interest first mortgage on newly constructed homes in Chicago's West Pullman, Greater Grand Crossing, and Austin neighborhoods. Homebuyers must demonstrate housing need (income below 80% Chicago AMI), ability to repay (income at or above 40% AMI, credit 620+, DTI <=43%), and willingness to partner (200-250 sweat equity hours over 8-14 months, monthly classes). Total housing payment does not exceed 30% of gross monthly income. A Shared Appreciation Agreement applies for the first half of the loan term. Habitat seeks down payment assistance (including DPP Advantage) on buyer's behalf.
• 0% interest mortgage.
• Housing payment capped at 30% of income.
• Habitat seeks DPA on buyer's behalf.
• Includes homeownership education and support.
• One-year construction warranty.
• Ongoing homeownership support workshops.
• Funding comes from Habitat for Humanity Chicago organizational funds, grants, donations, DPP Advantage (when available), third-party assistance.

Do you have to pay it back?

Habitat for Humanity Chicago Affordable Homeownership Program is a first mortgage and is repaid under the terms set by Habitat for Humanity Chicago.

• Repayment is triggered by Full repayment required on sale; Shared Appreciation Agreement splits appreciation with Habitat during first half of loan term (e.g., 15 of 30 years) at diminishing rate.
• The assistance is recorded in First 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?

Habitat for Humanity Chicago Affordable Homeownership Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Habitat for Humanity Chicago Affordable Homeownership Program limits household income to 80% of the area median income, which varies by county and household size.

• The limit applies to total household income, not only the borrower&rsquo;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?

Habitat for Humanity Chicago Affordable Homeownership Program caps the purchase price as follows: Purchase price does not exceed Fair Market Value (appraised); set near closing based on updated appraisal.

• Eligible property types include single-family (new construction built by Habitat Chicago).
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

Habitat for Humanity Chicago Affordable Homeownership Program serves buyers purchasing in Chicago, Illinois.

• The program targets specific areas: West Pullman and Greater Grand Crossing neighborhoods, Chicago, IL. Homes also in Austin neighborhood. Buyer must live in one of these focus neighborhoods.

How do you apply?

Applications for Habitat for Humanity Chicago Affordable Homeownership Program go through Habitat for Humanity Chicago, 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 Habitat Chicago in-house education classes and workshops; HUD-certified credit counselors recommended for pre-application preparation; Homebuyer University (separate public course offered by Habitat Chicago).

2. 2

   Contact Habitat for Humanity Chicago to reserve funds

   Funds are reserved through Year-round application; limited to available units in West Pullman and Greater Grand Crossing neighborhoods, 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.