Chicago IL

new generation of wealth, grow the middle class, and increase homeownership opportunity across Illinois for

low-to- moderate income borrowers affected by increasing student loan debt. IHDA will provide a 30-year fixed
rate mortgage loan with down payment and/or closing cost assistance paired with student loan debt relief.

Borrowers must qualify for an IHDA 1st Mortgage to utilize assistance. This will

be offered as a 30-year fixed rate 1st mortgage, Conventional or FHA.

2nd Mortgage

A recorded 2nd mortgage will provide $5,000 for down payment and/or closing

cost assistance. The funds will be provided in the form of a recorded mortgage,

0% deferred (due upon sale, payoff, transfer, or refinance of the 1st mortgage).

Promissory Note (Forgivable Assistance)

Borrowers will execute a promissory note for a maximum of $40,000. These

funds will be used to completely pay off the borrower’s outstanding student

loan balance at the time of home purchase. The Forgivable Assistance will be

reduced by 1/36th for each full month until full forgiveness is reached.

Deed Restriction

The deed restriction will have a 3-year term, in the event the borrower decides

to sell the property within the 3-year period, they will need to sell to another

household that qualifies within IHDA’s income and purchase price limits.

Program Overview Eligible borrowers must have at least $1,000 in student loan debt to qualify.

The maximum student loan payoff amount IHDA will provide is $40,000. These
funds will be used to completely pay off student loan debt.