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Kane County First-Time Homebuyer Deferred Loan Program (Kane-Elgin HOME Consortium)

Kane County Office of Community Reinvestment (Kane-Elgin HOME Consortium) · Elgin, Illinois

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Assistance

$10,000

The maximum the program publishes — not an offer

Income limit

80% AMI

Of area median income; varies by county and household size

Price cap

$287,000

Highest purchase price the program allows

Repayment

Deferred

No payments until the home is sold or refinanced

What is Kane County First-Time Homebuyer Deferred Loan Program (Kane-Elgin HOME Consortium)?

Kane County First-Time Homebuyer Deferred Loan Program (Kane-Elgin HOME Consortium) is a deferred second loan for homebuyers in Elgin, Illinois, administered by Kane County Office of Community Reinvestment (Kane-Elgin HOME Consortium).

  • Through the Kane-Elgin HOME Consortium, Kane County's Office of Community Reinvestment offers eligible first-time homebuyers a 0 percent deferred-payment second mortgage of up to $10,000 toward down payment and customary closing costs. The Program Area expressly includes all of the City of Elgin, including the portion in Cook County. The loan is not a grant or forgivable loan; the full amount is repaid out of net proceeds when the home is sold, title is transferred, or it ceases to be the borrower's primary residence (with a 5-year HUD affordability period). Applicants must be at or below 80 percent AMI, complete HUD-certified counseling, contribute at least 1 percent of the purchase price, and buy within the program area.
  • Up to $10,000 in down payment and closing cost assistance.
  • 0 percent interest.
  • No monthly payments (deferred).
  • Borrower chooses their own lender.
  • Covers all of the City of Elgin including the Cook County portion.
  • This is a federal program, so it is available beyond a single state or city.
  • Funding comes from Federal HOME Investment Partnerships Program (Kane-Elgin HOME Consortium).

How much assistance does it provide?

Kane County First-Time Homebuyer Deferred Loan Program (Kane-Elgin HOME Consortium) offers up to $10,000 in assistance.

  • Buyer contribution: Applicant must contribute a minimum down payment of at least 1 percent of the purchase price from own funds (earnest money); lender may require more.
  • The program can be combined with An additional up to $10,000 is available if the home is within the city limits of St. Charles (not applicable to Elgin).
  • Amounts are the program's published maximums, not an offer — Kane County Office of Community Reinvestment (Kane-Elgin HOME Consortium) determines any individual award.

Do you have to pay it back?

Kane County First-Time Homebuyer Deferred Loan Program (Kane-Elgin HOME Consortium) is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

  • Repayment is triggered by Loan is due in full out of net proceeds when the home is sold, title is transferred, or the household no longer occupies the home as its primary residence.
  • The assistance is recorded in Second position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Kane County First-Time Homebuyer Deferred Loan Program (Kane-Elgin HOME Consortium) 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 defined as not having owned a home in the last 3 years.
  • The home is occupied as a primary residence
  • A completed homebuyer education course, through HUD-certified housing counseling agency of buyer's choice with customized counseling (online/group courses alone do not qualify). Local agencies: The Neighbor Project (Aurora); Consumer Credit Counseling Service of Northern Illinois (Elgin); DuPage Homeownership Center (Wheaton).
  • Residency: Must currently live or work full-time in Kane County and the Kane-Elgin Consortium Area, and have done so for at least one year before the application date.
  • Complete HUD-certified homebuyer counseling (customized; online/group-only courses do not qualify) before signing a purchase contract. A required Real Estate Sales Contract Rider must be signed and attached to the initial offer or the property is ineligible. Contract closing date must be 35-plus days from execution. Property must pass county general and visual lead inspections. No cash back to buyer; no other debt paid at closing. Front-end housing ratio 25-32 percent; back-end DTI cap 50 percent. Assistance amount may be reduced after asset/cash-reserve review. GAP: minimum credit score not stated (no credit-score requirement found). GAP: max liquid assets not a hard cap (reviewed case-by-case). GAP: annual funding cap / reservation system not published. GAP: HUD AMI year/MSA not stated; income limits dated effective 6/15/23. GAP: provider phone not listed on program docs (contact by email). Note: the City of Elgin does not run a separate standalone DPA program; its DPA is delivered through this Kane-Elgin HOME Consortium program.

The program excludes

  • Manufactured homes
  • Purchases above the $287,000 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?

Kane County First-Time Homebuyer Deferred Loan Program (Kane-Elgin HOME Consortium) limits household income to 80% of the area median income, which varies by county and household size.

  • Household income (HUD-projected gross, adjusted for household size) must not exceed federal limits. Effective 6/15/23: 1 $61,800; 2 $70,600; 3 $79,450; 4 $88,250; 5 $95,350; 6 $102,400; 7 $109,450; 8-plus $116,050. Front-end housing ratio 25-32 percent; back-end ratio not exceeding 50 percent.
  • 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?

Kane County First-Time Homebuyer Deferred Loan Program (Kane-Elgin HOME Consortium) caps the purchase price at $287,000.

  • Eligible property types include Single Family, Condo, and Townhouse.
  • New construction is eligible.
  • Manufactured homes are not eligible.

Where does it apply?

Kane County First-Time Homebuyer Deferred Loan Program (Kane-Elgin HOME Consortium) is a federal program, so it is not limited to Illinois.

  • The program targets specific areas: Kane-Elgin Consortium Area: all of Kane County except Aurora, Algonquin, Barrington Hills, Bartlett, Hampshire, Huntley, Hoffman Estates, Montgomery, and the DuPage portion of Wayne; plus all of the City of Elgin (including its Cook County portion), all of the Village of Maple Park, and all of the City of St. Charles.

How do you apply?

Applications for Kane County First-Time Homebuyer Deferred Loan Program (Kane-Elgin HOME Consortium) go through Kane County Office of Community Reinvestment (Kane-Elgin HOME Consortium), which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through HUD-certified housing counseling agency of buyer's choice with customized counseling (online/group courses alone do not qualify). Local agencies: The Neighbor Project (Aurora); Consumer Credit Counseling Service of Northern Illinois (Elgin); DuPage Homeownership Center (Wheaton)..

  2. Contact Kane County Office of Community Reinvestment (Kane-Elgin HOME Consortium) to reserve funds

    Funds are reserved with the provider and are subject to availability.

  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.

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Kane County First-Time Homebuyer Deferred Loan Program (Kane-Elgin HOME Consortium), explained

A short, free course on Kane County First-Time Homebuyer Deferred Loan Program (Kane-Elgin HOME Consortium): what it is, who it is for, when it is repaid, where it applies and how to apply. Based on program data from July 2026. About ten minutes.

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