Lake-McHenry Habitat for Humanity Homeownership Program

What is Lake-McHenry Habitat for Humanity Homeownership Program?

Lake-McHenry Habitat for Humanity Homeownership Program is a first mortgage for homebuyers in North Chicago, Illinois, administered by Lake-McHenry Habitat for Humanity.

• Lake-McHenry Habitat for Humanity builds and sells newly constructed, energy-efficient homes to income-qualified households in Lake and McHenry Counties, including North Chicago. Qualified buyers receive 0% interest fixed-rate mortgages with payments capped at 30% of gross monthly income, and Habitat assists buyers in securing available DPA at closing.
• 0% interest fixed-rate mortgage.
• Payment capped at 30% of income.
• New construction energy-efficient home.
• Habitat assists with DPA at closing.
• Funding comes from Habitat affiliate fundraising, volunteer labor, donated materials, grants.

Do you have to pay it back?

Lake-McHenry Habitat for Humanity Homeownership Program is a first mortgage and is repaid under the terms set by Lake-McHenry Habitat for Humanity.

• Repayment is triggered by Sale of home or end of loan term; shared appreciation agreement applies for first half of loan term if sold early.
• The assistance is recorded in First position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Lake-McHenry Habitat for Humanity 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?

Lake-McHenry Habitat for Humanity 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’s.
• The program lists a maximum household size of 8.
• 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?

Lake-McHenry Habitat for Humanity Homeownership Program caps the purchase price as follows: Home purchase price will not exceed Fair Market Value; sales price set at appraisal value near closing.

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

Where does it apply?

Lake-McHenry Habitat for Humanity Homeownership Program serves buyers purchasing in North Chicago, Illinois.

• The program targets specific areas: Lake County, IL communities including North Chicago.

How do you apply?

Applications for Lake-McHenry Habitat for Humanity Homeownership Program go through Lake-McHenry Habitat for Humanity, 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 Lake-McHenry Habitat for Humanity classes and workshops.

2. 2

   Contact Lake-McHenry Habitat for Humanity to reserve funds

   Funds are reserved through Application cycles open twice per year (February and September); North Chicago homes have separate interest list, 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.