IHDAccess Forgivable

What is IHDAccess Forgivable?

IHDAccess Forgivable is a forgivable loan for homebuyers in Statewide, Illinois.

• IHDAccess Forgivable provides 4% of the purchase price up to $6,000 as a 0% interest forgivable second mortgage that is forgiven on a monthly basis over 10 years. No monthly payments. Borrower retains full benefit if they remain in the home as primary residence for the full 10-year forgiveness term; sale/refinance/non-occupancy before maturity triggers a prorated payback. Paired with a 30-year fixed IHDA first mortgage (FHA/VA/USDA/Conventional). Available statewide to first-time and repeat homebuyers; 640 FICO minimum; 1% borrower contribution.
• 4% of the purchase price up to $6,000 in down payment and closing-cost assistance, structured as a 0% interest forgivable second mortgage. The note is forgiven monthly over 10 years (1/120th per month, ~10% per year). If borrower remains in the home as primary residence for the full 10-year term, the loan is fully forgiven and no repayment is owed. If the home is sold, refinanced, or borrower vacates before 10 years, a prorated balance is due to IHDA. Paired with an IHDA 30-year fixed-rate first mortgage (FHA/VA/USDA/Conventional). Available to first-time AND repeat homebuyers statewide.
• Funding comes from State, HFA, and Bond.

How much assistance does it provide?

IHDAccess Forgivable offers up to $6,000 in assistance.

• Buyer contribution: Borrower must contribute $1,000 or 1% of purchase price, whichever is greater.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

IHDAccess Forgivable is forgiven after 10 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Forgiven 1/120th monthly over 10 years and prorated unforgiven balance due if home is sold, refinanced, transferred, or no longer borrower's primary residence before the 10-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?

IHDAccess Forgivable is open to buyers who will live in the home as their primary residence.

What are the income limits?

IHDAccess Forgivable limits household income to $158,880.

• 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?

IHDAccess Forgivable caps the purchase price at $951,665.

• Eligible property types include Single-family detached, 1-4 unit (per first-mortgage product), condominium, townhouse, PUD.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

IHDAccess Forgivable serves buyers purchasing in Statewide, Illinois.

• The program targets specific areas: IHDA designates federally qualified target areas with relaxed first-time-homebuyer rule and income limits.

How do you apply?

Applications for IHDAccess Forgivable 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 IHDA-approved HUD-certified homebuyer education (online or in-person; required for first-time homebuyers)..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through IHDA-approved lender reserves funds via IHDA Mortgage's LOS at loan reservation; subject to program funding availability., 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.