Habitat Illinois Building Impact

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What is Habitat Illinois Building Impact?

hibi-statelogoThe Habitat Illinois Building Impact program is a grant generously provided by Illinois Housing Development Authority (IHDA) to Habitat for Humanity of Illinois. The grant is for $350,000 to fund housing for those in need. The funding agreement will allow Habitat Illinois to make loans to qualifying low and very low income households for the purposes of home acquisition, construction, and or rehabilitation.

View and Download Loan Application Packet Files

 

Submit Application   F A Q s

 

Grant Highlights:

  • The loans will be made to facilitate the acquisition, construction and/or rehabilitation of approximately 28 homes across Illinois
  • Each loan will be in an amount capped at $15,000 for Very Low Income Households and $10,000 for Low income households
  • Each loan will be interest-free and have a term of five years
  • Each loan will be forgiven at the rate of onesixtieth (1/60th) of the amount of the loan at the end of each month over the term period*

 

How to Qualify:

  • To qualify as low income, the applicant’s household must have an income that is less than or equal to eighty percent (80%) of the median income for the metropolitan statistical area or county in which the home is located (Using HUD’s Part 5 Income Definition)
  • To  qualify as very low income, the applicant’s household must have  an annualized adjusted income that is less than or equal to fifty percent (50%) of the median income for the metropolitan statistical area or county in which the home is located
  • All homes, households, and contractors must comply with all federal, state and local governmental approvals required by law
  • The housing debt-to-income ratio for the Household must be thirty-five percent (35%) or less
  • The total debt-to-income ratio for the Household is forty-one percent (41%) or less

 

Grant Application Components:

  • Application for Housing
  • Certificate of Income
  • Fully executed purchase contract
  • Commitment from conventional lender or other institution to make 1st mortgage loan to household
  • Current appraisal of home showing value of home not to exceed the amount of first mortgage loan to household
  • Copy of calculations by sponsor showing debt-to-income ratio of under 35% (housing) and 41%(total)
  • Copy of note and mortgage for 1st mortgage loan
  • Certificate of Counseling
 
Submit Application 
 
*Provided, however, that if (x) the property is sold or otherwise transferred within five (5) years of making the Loan, other than by inheritance to a co-owner of the property or by operation of law upon the death of a joint tenant owner or to a spouse as a result of a divorce of co-owners, or (y) the Household ceases to occupy the Home as their principal residence within this five (5) year period or (z) a refinancing of the Home resulting in the Household being allowed to receive a cash payment, the Household shall repay to IHDA the amount of the Loan reduced by one-sixtieth (1/60th) of that amount for each full month the Household occupied the property.