Updated · Mike Certo, NMLS #260555
Illinois Down Payment Assistance Programs Guide
Illinois down payment help runs through IHDA, and in 2026 it comes in three flavors, each a second mortgage layered behind your main loan. One forgives itself month by month. One defers until you move or refinance. One you pay back on a schedule. This page works through the mechanics of all three, from the forgiveness math to what triggers repayment, and how each stacks on an FHA, conventional, VA, or USDA first mortgage.
How does IHDA down payment assistance actually work?
The help is never a standalone loan. IHDA places it as a second mortgage behind your first, covering the down payment and closing costs while the primary loan carries the purchase. Three seconds share the field in 2026: Forgivable, Deferred, and Repayable. You choose one. The first mortgage underneath can be a conventional, FHA, VA, or USDA loan, and IHDA sets a 640 score across all three.
IHDAccess Forgivable: how the monthly forgiveness works
IHDAccess Forgivable gives 4% of the purchase price up to $6,000, and the word people miss is monthly. The balance forgives on a pro-rata schedule across ten years, a little each month, not a cliff at the end. Sell in year five and roughly half the amount is still on the books and settles at closing. Live there the full decade and the whole $6,000 clears to zero. No monthly payment along the way.
IHDAccess Deferred: the quiet zero-interest second
IHDAccess Deferred lends 5% of the price up to $7,500 at zero interest, and it does nothing until you act on the house. There is no monthly payment and no forgiveness clock. The balance simply waits, then comes due in full when you sell, refinance the first mortgage, or pay the loan off. For a buyer who wants a larger cushion than Forgivable but no added payment, Deferred is the middle path.
IHDAccess Repayable: the largest percentage, repaid monthly
IHDAccess Repayable puts up 10% of the price up to $10,000, the biggest percentage of the three. The tradeoff is that you pay it back. It carries zero interest, repaid in monthly installments over ten years. So a buyer who needs more cash at the table but can carry a modest second payment reaches further with Repayable than with either the Forgivable or the Deferred option, without owing any interest on the borrowed amount.
The three IHDA programs, side by side
The three solve the same problem in different ways: how much you get, and how you give it back. This is the comparison Mike walks through on almost every Illinois call.
| Program | Amount | Structure | First-time |
|---|---|---|---|
| IHDAccess Forgivable | 4% of price, max $6,000 | Forgiven monthly over 10 yrs | Not required |
| IHDAccess Deferred | 5% of price, max $7,500 | 0% deferred; due on sale/refi/payoff | Not required |
| IHDAccess Repayable | 10% of price, max $10,000 | 0% repaid monthly over 10 yrs | Not required |
IHDA program figures, verified August 2026. Income and purchase-price limits apply on top and vary by county; confirm your county's numbers at ihdamortgage.org/limits.
What credit score and contribution does IHDA require?
All three programs set a 640 minimum credit score. IHDA also asks the borrower to bring a contribution of their own, 1% of the purchase price or $1,000, whichever is greater. That is money you put in on top of the assistance, not part of it. Income and price ceilings then apply by county, so the number that matters is the one for the county you are buying in. Verify your county's figure at IHDA.
What triggers repayment, and when does the balance come due?
It depends on which program you took. For the deferred second, Deferred, the balance comes due when you sell, refinance the first mortgage, or pay it off. It charges no interest, so you repay only what was advanced. Repayable is settled through its monthly installments, and Forgivable clears itself month by month as long as you keep living in the home. Move early on Forgivable and the unforgiven slice repays at closing.
How does IHDA assistance layer with FHA, conventional, VA, and USDA?
The IHDA second sits on top; the first mortgage sets most of the terms. FHA is the usual base for a thinner file, with a 2026 Illinois floor of $541,287 on a single-family home. Conventional and HomeReady fit once your score clears the mid-600s, since the mortgage insurance cancels at 20% equity. VA is zero down for eligible veterans. Downstate, a wide band of counties qualifies for zero-down USDA, though Cook and the collar suburbs mostly do not.
Programs that closed, and one that never existed here
Three claims float around older Illinois pages that no longer hold. IHDA SmartBuy, which paid off up to $40,000 in student loans, has been closed since February 24, 2025. The old Opening Doors grant is no longer on IHDA's active program list, so treat it as folded. And IHDA does not offer a Mortgage Credit Certificate. If a site points you to any of the three today, it is out of date, and the three IHDAccess programs are the live options.
Which IHDA option fits which buyer?
If you want a hands-off balance with nothing due until you move, Deferred gives a solid cushion. Forgivable rewards staying put, clearing to zero over ten years. Repayable reaches the highest percentage, 10% up to $10,000, for a buyer who can carry a small second payment. One program per purchase, so the pick is about your cash gap and how long you plan to stay.
Related Illinois guides
Illinois down payment assistance FAQ
How does IHDAccess Forgivable forgiveness work?
IHDAccess Forgivable gives 4% of the purchase price up to $6,000 and forgives it monthly across ten years, not in a single lump at year ten. Each month you stay in the home, a slice of the balance clears on a pro-rata schedule, so if you sell in year five roughly half remains and is repaid at closing. Stay the full ten years and it forgives to zero.
What is the difference between the three IHDA programs?
Size and payback. Forgivable gives 4% up to $6,000 and forgives monthly over ten years. Deferred gives 5% up to $7,500 at zero interest with nothing due until you sell, refinance, or pay off. Repayable gives 10% up to $10,000, repaid in monthly installments over ten years. All three take first-time and repeat buyers.
What credit score and contribution does IHDA require?
All three IHDA programs set a 640 minimum credit score and ask the borrower to put in 1% of the purchase price or $1,000, whichever is greater, from their own funds. That contribution is separate from the assistance itself. Income and purchase-price limits apply on top and vary by county, so confirm your county's figures at ihdamortgage.org/limits before you build a budget around a program.
Can you combine more than one IHDA program?
No. IHDA allows one assistance program per purchase, so you cannot stack Forgivable on Deferred or add Repayable on top. Each one fills the same down payment and closing-cost slot. The choice comes down to how much help you need and whether you would rather have a balance that forgives over time, defers quietly, or carries a set monthly payment. Mike helps buyers pick the right single program.
What triggers repayment of an IHDA deferred loan?
For the deferred second, IHDAccess Deferred, three events bring the balance due: selling the home, refinancing the first mortgage, or paying the loan off in full. It charges no interest, so you repay only the principal that was advanced. IHDAccess Repayable is different: it carries a monthly payment from the start, and IHDAccess Forgivable clears itself monthly as long as you keep living there.